Trump order targets mortgage insurance, refinance costs

President Trump signed the executive order "Decreasing Housing Costs for the American People," directing the FHFA to pilot proactive cancellation of mortgage insurance on future eligible loans and to make permanent its pilot waiving lender's title insurance on refinances. It comes less than two weeks before the Nov. 3 midterms, with 30-year mortgage rates at 7.32%.

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The order aims to cut borrower costs through earlier PMI cancellation on future loans and a permanent title-insurance waiver for refinances. Private mortgage insurers face a potential long-run premium-duration headwind, though their trade group publicly welcomed the focus on lowering costs. Title insurers face a direct threat to refinance-related premium revenue if the FHFA pilot becomes permanent. The consumer impact is likely modest, since affordability is driven mainly by home prices and mortgage rates, which sit near 7.3%, and refinance demand is down 59% year over year. The timing before the midterms signals a political push on housing affordability, and implementation details are still unclear.