Trump order targets mortgage insurance and closing costs in latest housing push

President Donald Trump signed an executive order on Thursday aimed at lowering the cost of buying and refinancing a home, the White House said.

The order, titled "Decreasing Housing Costs for the American People," leans mostly on federal housing agencies rather than new legislation.

What the order does

According to the White House fact sheet:

• Mortgage insurance. The Federal Housing Finance Agency must set up a pilot to cancel borrowers' mortgage insurance premiums once they reach required equity, measured by current market value.
• Title insurance. FHFA will make permanent a pilot that lets more borrowers use cheaper alternatives to title insurance, cutting closing costs on refinances.
• Factory-built homes. HUD and FHFA will co-chair a task force on manufactured housing to improve quality and lower costs.
• Government loans. The secretaries of Agriculture and Veterans Affairs must reduce interest rates on single-family home loans their departments make.

What the industry says

HousingWire reported that a mortgage lenders' trade group, the Community Home Lenders of America, praised the title, manufactured housing and veterans loan provisions. Analysts at KBW expect a limited market effect for now because the title change applies only to refinances, which make up about 7% of title premiums, HousingWire reported.

No deadlines were reported for the agencies.

Part of a wider pitch

The White House tied the order to earlier steps, including a January order limiting large investors from buying single-family homes. Housing costs are among the pocketbook issues on the ballot as voters head into the Nov. 3 midterms.