Trump's executive order targets mortgage insurance, refinance costs

Key Points:

• President Donald Trump signed an executive order titled "Decreasing Housing Costs for the American People," aimed at reducing mortgage costs by canceling mortgage insurance on eligible future loans and expanding refinancing programs.
• The order directs the Federal Housing Finance Agency (FHFA) to pilot a program that proactively cancels private mortgage insurance (PMI) once borrowers reach a certain home equity threshold, potentially saving homeowners thousands of dollars.
• The executive order also seeks to make permanent the FHFA’s pilot program that waives lenders' title insurance policies during refinancing, which could reduce closing costs by $500 to $1,500 for eligible borrowers.
• Homeownership affordability has declined, with mortgage payments on median-priced homes rising from 26% to 33% of median family income between 2022 and 2025, highlighting the significance of these measures ahead of the Nov. 3 midterm elections.
• Experts note that while these changes may help lower some costs, the overall impact on housing affordability remains uncertain due to factors like home prices and interest rates, which continue to drive housing expenses.