FHFA News & Analysis
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Market Mood
Trump's Order Targets Mortgage Insurance to Cut Borrowers' Costs
President Donald Trump signed an executive order titled "Decreasing Housing Costs for the American People" to reduce mortgage expenses amid rising interest rates and inflation. The order directs federal agencies to cancel mortgage insurance on eligible future loans and expand refinancing programs to make homeownership more affordable. Federal Housing Finance Agency director Bill Pulte said millions of Americans could save thousands of dollars. The order includes a pilot program for canceling mortgage insurance automatically once borrowers reach a specified home equity threshold, applying to mortgages originated after the program starts. Currently, conventional loans require private mortgage insurance (PMI) when the down payment is less than 20%, which borrowers can remove after reaching 20% equity or having a loan balance under 80% of the purchase price. The order arrives ahead of the November 3, 2026 midterm elections, addressing concerns over housing affordability. According to the Federal Reserve, the monthly mortgage payment on a median-priced home represented about 33% of the median family's income in 2025, rising from 26% in 2022. This policy aims to lower costs for homeowners and buyers by easing mortgage insurance and refinancing expenses. This matters because the pilot program could reduce ongoing mortgage insurance costs for new homeowners, potentially lowering monthly payments and improving housing affordability for those affected by rising interest rates and inflation.
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FHFA's Bill Pulte Named Acting DNI, Managing $10 Trillion Oversight
President Donald Trump appointed Bill Pulte, who currently leads the Federal Housing Finance Agency (FHFA), as the acting director of national intelligence, replacing Tulsi Gabbard. Pulte will continue his role at FHFA while overseeing the U.S. intelligence community, including the CIA and NSA. Trump emphasized Pulte's management experience with over $10 trillion in assets at Fannie Mae and Freddie Mac. The move has faced criticism from Democratic leaders and Senate Republicans, who express concerns over Pulte's qualifications and potential political motivations.
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FHFA Lowers Home Insurance Costs for Fannie Mae and Freddie Mac Mortgages
The Federal Housing Finance Agency (FHFA) has implemented new rules allowing Fannie Mae and Freddie Mac to accept Actual Cash Value (ACV) coverage for roofs, thereby lowering homeowners' insurance premiums. This change targets rising insurance costs and aims to make home ownership more affordable. Previously, borrowers were often required to secure full Replacement Cost Value (RCV) for roofs, contributing to higher insurance rates. The FHFA also simplified insurance regulations for condominium buildings, potentially allowing more properties to qualify for mortgages and enhancing affordability for buyers.
Read More: FHFA Lowers Home Insurance Costs for Fannie Mae and Freddie Mac Mortgages