The administration released a new executive order aimed at decreasing housing costs for the American people. The order makes important changes to expand supply and shore up owner affordability over the long term.
The executive order directs:
- Fannie Mae, Freddie Mac, and their regulator (the FHFA) to develop a program that would ensure the timely cancellation of mortgage insurance. Currently, homeowners must request the release of mortgage insurance when the mortgage is 78% or less of the property value. This change would put more money in homeowners’ pockets.
- The creation of a task force made up of HUD, FHFA, USDA, Commerce and the VA to explore methods to increase the quality and lower the cost of home construction, with an emphasis on modern manufacturing processes.
- The FHFA to expand its current program to waive title insurance requirements and fees on certain refinances.
- The VA and USDA to reduce their rates on direct loans for home purchases, which could help stimulate home purchases.
NAR will monitor and comment as these changes are implemented and more information becomes available.
