WASHINGTON — With support from credit unions, President Donald Trump has signed an executive order the White House says is aimed at reducing homeownership costs by lowering mortgage insurance premiums, cutting refinancing expenses and expanding access to more affordable housing.
The order, signed Thursday, directs federal agencies to pursue several initiatives intended to ease housing affordability pressures, according to Reuters and HousingWire.
The executive order includes several provisions:
- Mortgage insurance: Directs the Federal Housing Finance Agency to pursue a pilot program automatically canceling mortgage insurance for eligible borrowers who meet home equity requirements.
- Refinancing costs: Calls for expanding an existing title insurance waiver pilot into a permanent nationwide program.
- Manufactured housing: Establishes a federal task force to streamline requirements and encourage construction of lower-cost, factory-built homes.
- Government mortgages: Directs the Agriculture and Veterans Affairs departments to reduce interest rates on certain single-family housing loans.
Credit Union Response
America’s Credit Unions President and CEO Scott Simpson welcomed the initiative.
“Credit unions have always been dedicated to helping working families build generational wealth through affordable homeownership. America’s Credit Unions supports the White House’s efforts to cut unnecessary closing costs, streamline mortgage insurance rules, and expand financing options for modern, lower-cost homes,” Simpson said in a statement. “We look forward to working with the administration and housing regulators to ensure credit unions can fully leverage these initiatives to deliver real savings to their 146 million members.”
The action comes as housing affordability remains strained. The average 30-year fixed mortgage rate stood at 7.32% this week, compared with 6.19% a year earlier.
The order’s ultimate impact will depend on implementation by federal housing regulators.
