WASHINGTON–The White House is considering a sweeping executive order that would direct Fannie Mae, Freddie Mac and several federal agencies to take steps to lower mortgage rates, reduce refinancing expenses and eliminate other homeownership costs ahead of November’s midterm elections, according to a draft obtained by Scotsman Guide.
The proposed order, titled “Decreasing Housing Costs for the American People,” includes directives addressing mortgage interest rates, mortgage insurance cancellation, loan-level pricing adjustments, appraisal requirements and manufactured housing construction.
Scotsman Guide reported that multiple mortgage industry sources familiar with the draft said the order could be issued as soon as Wednesday, although the document remains subject to revision and may not be issued at all.
The White House did not immediately respond to the publication’s request for comment Tuesday.
The five-section draft comes as housing affordability has emerged as a major concern among voters, with mortgage rates exceeding 7% and home sales remaining under pressure.
Federal Agencies Could Be Directed to Lower Rates
Among the most significant provisions, the draft would direct the U.S. Department of Agriculture and Department of Veterans Affairs, which administer government-backed mortgage programs, to use their existing authorities to unilaterally lower interest rates on single-family mortgage loans.
The proposal would also direct government-sponsored enterprises Fannie Mae and Freddie Mac to identify borrowers who may qualify for cancellation of mortgage insurance.
According to Scotsman Guide, the enterprises could require mortgage servicers, where legally and operationally feasible, to notify borrowers promptly when they become eligible to cancel mortgage insurance.
The order would also seek to eliminate unnecessary documentation requirements, appraisal expenses and other administrative obstacles that can prevent borrowers from canceling mortgage insurance and lowering their monthly payments.
The draft calls for those changes to remain consistent with safety and soundness requirements, contractual obligations and collateral risk considerations.
Changes to Refinancing Requirements
The proposed order includes several measures intended to make mortgage refinancing less expensive and more accessible.
Federal Housing Finance Agency Director Bill Pulte would be authorized to consider significantly expanding a title insurance waiver pilot program introduced in 2024.
That program allows alternative methods of verifying property titles for certain refinancing transactions.
Under the draft, potential changes would include:
- Eliminating geographic restrictions on the title insurance waiver program.
- Expanding eligibility to homeowners with less than 20% equity.
- Certifying additional title-assessment providers to increase competition.
- Reducing or eliminating loan-level price adjustments for eligible refinances.
- Waiving appraisals, income reverification and other documentation requirements for certain limited cash-out refinances that lower borrowers’ monthly payments.
- Using existing mortgage data and advanced technology to reduce underwriting and property valuation expenses.
The draft specifically calls on Fannie Mae and Freddie Mac to explore technologies incorporating what it describes as “Super Intelligence” to reduce mortgage and homeownership costs.
It also would require lenders to pass resulting savings along to borrowers.
“The Director shall require that cost savings resulting from the program be passed through to borrowers and that lenders inform borrowers of those savings,” the draft states, according to Scotsman Guide.
The FHFA did not respond to the publication’s request for comment.
Mortgage Rates Complicate Affordability
The proposed changes come as mortgage borrowing costs have risen substantially during 2026.
According to Scotsman Guide, mortgage rates have climbed from approximately 6% in February to more than 7%, creating additional affordability challenges for prospective buyers.
The higher rates have also reinforced the mortgage rate lock-in effect, in which homeowners with existing low-rate mortgages are reluctant to sell and take on more expensive financing.
Approximately two-thirds of existing mortgage borrowers have interest rates below 5%, according to the report. As the CU Daily has been reporting, elevated rates have contributed to a slowdown in housing turnover to multidecade lows while reducing demand for refinancing.
The publication noted that some recent homebuyers stretched their finances to purchase homes with the expectation they could refinance at lower rates later. However, rates have generally increased since March, and economists at Fannie Mae and the Mortgage Bankers Association expect them to remain near current levels throughout 2027.
Task Force Would Address Manufactured Housing
The proposed executive order also seeks to address housing supply by expanding opportunities for manufactured and factory-built homes.
Under the draft, the Department of Housing and Urban Development, Department of Commerce, VA and USDA would establish a task force to standardize permitting requirements and facilitate production of factory-built housing.
The task force would be co-chaired by Pulte and HUD Secretary Scott Turner.
Among its responsibilities would be evaluating whether existing federal laws permit certain grant funding to be conditioned on state and local governments adopting standardized permitting and licensing requirements for factory-built housing.
The initiative would seek to reduce regulatory barriers that can increase construction expenses and slow the delivery of new housing.
Legal Authority Remains Uncertain
Scotsman Guide reported that it remains unclear whether all the directives contained in the draft executive order would comply with existing mortgage laws or fall within the legal authority of the agencies involved.
The draft argues that unnecessary regulations and outdated mortgage origination processes have contributed to rising homeownership costs.
“Over the past two decades, many creditworthy Americans have been locked out of homeownership due to the rising costs associated with homeownership,” the draft states, according to Scotsman Guide.
