Trump Housing Order Expands Title Alternatives After $25 Million in Reported Savings

U.S. homebuyers with Fannie Mae- or Freddie Mac-backed mortgages, and borrowers refinancing eligible homes, could see lower insurance or closing costs under a new federal directive. President Donald Trump signed the executive order Thursday to target mortgage, title-insurance, refinance and manufactured-housing costs, according to HousingWire, which reported that the final text was narrower than an earlier draft. The sources identify no separate foreign-buyer tax, visa or entry change.

What changes for homebuyers and refinancers?

Trump’s order directs the FHFA to establish a pilot using automated valuation models to identify borrowers who meet equity and other requirements for proactive cancellation of mortgage insurance. Fannie Mae and Freddie Mac would run the pilot, but only for mortgages made after the program is established, sharply limiting its reach among existing borrowers.

It also calls for a task force on manufactured housing, co-chaired by Housing and Urban Development Secretary Scott Turner and FHFA Director Bill Pulte (KDBC). The group has 180 days to recommend ways to standardize approvals and inspections for factory-built and modular homes. The USDA and VA are directed to reduce interest rates on single-family loans made directly by their programs, within existing authority and available funding.

For qualifying limited cash-out refinances, the order calls for waivers of appraisals, income reverification and other documentation when the borrower’s monthly payment falls. It also directs expansion of less expensive title-review options for eligible refinances. Newsweek reported that mortgage rates were back above 7%. CBS4 Local reported a slowing housing market and rising lending costs. For wider financing context, see our reports on mortgage-rate trends and affordable mortgage-term changes.

How much could mortgage and title costs fall?

Fannie Mae has delivered about 8,000 loans backed by attorney opinion letters and another 22,000 through its title acceptance program, with the company reporting zero title defects. Fannie estimates these initiatives saved borrowers about $25 million over roughly 18 months, or $500 to $1,500 per loan.

Freddie Mac said its lender title assessment option saves an average of $600 to $650 per transaction, with savings ranging from $400 to $1,700 depending on state rate structures. Launched about a year ago, the program has supported a little more than $3 billion in volume. Those figures relate to the existing initiatives rather than a guaranteed saving for every new borrower.

Which borrowers can get mortgage insurance cancelled?

The draft order would have applied the pilot to all mortgages purchased by the government-sponsored enterprises. Industry estimates suggested that roughly 40% of borrowers with mark-to-market loan-to-value ratios below 80% might have qualified for cancellation. The signed version excludes existing mortgages by limiting the pilot to loans made after its establishment.

Under the Homeowners Protection Act of 1998, mortgage insurance cancels automatically when scheduled amortization brings the loan-to-value ratio below 78%. Borrowers may request cancellation after a new appraisal if their ratio is below 75% for loans with two to five years of seasoning, or below 80% for loans with more than five years of seasoning. Seth Appleton, president of U.S. Mortgage Insurers, said monthly payments fall when mortgage insurance is cancelled and that the new-loan pilot can test tools for accelerating cancellation where home-price appreciation supports it.

“Fraud is unaffordable, and the threats facing homeowners are growing,” — Chris Morton, CEO, American Land Title Association

Morton said seller impersonation fraud attempts have more than doubled in two years, while fraud and forgery claims associated with mortgage refinances average nearly $207,000. He warned that lower costs must not shift significant financial risks onto homeowners or the broader housing-finance system.

What happens next for investors and manufactured housing?

Treasury’s institutional-investor proposal is separate from the executive order. It would bar investors controlling 350 or more single-family homes from buying more units starting January 7, 2027, unless a purchase qualifies for an exception. Homes bought before July 11, 2026, would not have to be sold.

For title reviews, the order expands a 2024 pilot that permits alternatives to traditional lender's title policies in certain low-risk refinances with loan-to-value ratios below 80%. The directive contemplates extension to loans above 80%, removal of geographic limits and certification of additional title-assessment providers. How far the changes extend will depend on FHFA implementation.

The manufactured-housing task force retains its 180-day recommendation deadline. Housing and Urban Development Secretary Scott Turner said it could bring more innovative and affordable housing solutions to market by modernizing standards and accelerating approvals.

Sources

• Housing leaders weigh in on Trump’s scaled-back EO — housingwire.com, 2026-10-23
• Trump Unveils Two Major Housing Moves That Could Save ... — newsweek.com, 2026-10-23
• Trump signs executive order lowering housing costs — cbs4local.com, 2026-10-23