Industry5 min read· October 21, 2026

What Would the New Housing Executive Order Do to Mortgage Costs?

By Sam Alpert, President and Mortgage Loan Originator, NMLS #1961555

A new housing executive order targets PMI cancellation, refinance closing costs, VA and USDA loan rates, and manufactured housing. Here is what it would actually change.

The White House circulated an executive order this week called "Decreasing Housing Costs for the American People." Scotsman Guide obtained the draft on Tuesday and The Mortgage Scoop obtained a copy. By Wednesday evening, the title industry's trade group ALTA described the order as issued, while the White House's own list of presidential actions did not yet show the text. Either way, its provisions are instructions to agencies, not instant changes at your closing table. Here is what it says, in plain terms.

What would it do about private mortgage insurance?

Private mortgage insurance, or PMI, is insurance borrowers pay when they put down less than 20%. It adds to the monthly payment. Under current law, per the Consumer Financial Protection Bureau: you can ask your servicer in writing to cancel PMI once your balance reaches 80% of the home's original value; your servicer must end it automatically once the balance is scheduled to reach 78%; and it must end at the midpoint of the loan's term either way. Fannie Mae and Freddie Mac often run their own cancellation guidelines, which cannot be less favorable than these.

The order would direct Fannie and Freddie to review their portfolios, using automated valuation models and other property data, to proactively identify borrowers who now qualify for cancellation. Servicers would then be required, "to the extent permitted by law and operationally feasible," to notify those borrowers promptly, and to cut "unnecessary documentation requests, appraisal costs, and other administrative barriers to cancellation."

How would it make refinancing cheaper?

Three ways:

Title insurance: a 2024 pilot that lets some refinances use an automated title-risk review instead of a new lender's title policy becomes permanent and nationwide, with more certified providers, and the FHFA will evaluate opening it to loans above 80% loan-to-value where title risk is low.
Loan-level price adjustments: these risk-based fees, which Fannie and Freddie charge and lenders pass into your rate or closing costs, would be reduced or eliminated on eligible refinances.
Paperwork: appraisals, income re-verification, and other documentation requirements would be waived for limited cash-out refinances that lower the borrower's monthly payment, where the GSEs' existing data support it.

The order also says lenders must pass the savings through to borrowers and tell them about it.

What does it do for VA and USDA loans?

It directs the USDA and the VA to lower the interest rates charged on single-family home loans originated directly by those departments, using their existing agency authorities. Scotsman Guide notes it is unclear whether all of the order's directives comply with existing mortgage law.

What about manufactured homes?

A new Task Force on Manufactured Housing Innovation, co-chaired by the HUD Secretary and the FHFA Director, with the secretaries of agriculture, commerce, and veterans affairs as members, gets 180 days to recommend ways to speed up factory-built housing: eliminating duplicative reviews, standardizing permitting and licensing, and evaluating whether federal housing grants can be tied to state and local permitting reform.

How much could a borrower actually save?

These figures come from the reporting, not from final rules:

Title waiver on a refinance: $500 to $1,500 (FHFA estimate)
Appraisal waiver: about $550
Pricing adjustment, one example: $3,375 (The Mortgage Scoop's example: a $300,000 refinance, 750 credit score, 80% loan-to-value)

Whether one refinance could capture all of these at once is not established by the sources.

When would any of this actually happen?

Not immediately. These are directions to agencies: pilots get expanded, a task force gets 180 days, and GSE rule changes move on FHFA timelines. Nothing changes for borrowers this week. For context, Scotsman Guide reports mortgage rates averaging more than 7%, up from around 6% in February, and that about two-thirds of existing borrowers hold rates under 5%.

Frequently asked questions

Is the housing executive order signed?

The White House circulated the order in draft on October 20-21, 2026, and the title industry group ALTA described it as issued. As of Wednesday evening, October 21, the full text had not yet appeared on the White House's published list of presidential actions.

Does the order lower my mortgage rate?

No. It directs agencies to cut certain fees and costs. It does not set consumer mortgage rates.

Will PMI be removed automatically?

The order would have Fannie Mae and Freddie Mac review their portfolios and require servicers to notify borrowers who qualify for cancellation, with less paperwork. Current law already requires automatic PMI termination at 78% of the home's original value.

How much could it save on a refinance?

Reported estimates: $500 to $1,500 for a title waiver, about $550 for an appraisal waiver, and thousands in pricing fees on some loans. Actual savings depend on the final rules and your loan.

Sam Alpert, NMLS #1961555. Spring Home Company, NMLS #2741914. Not a rate quote or a commitment to lend.