The President signed “Decreasing Housing Costs for the American People” yesterday. I’ve read through the coverage, and there’s a lot of headline hype, so here’s what the rule is today, what the order says, and what actually changed.
Today: On a primary home, you can request PMI removal at 80% of your original value, and it drops off automatically at 78% if you’re current. Using today’s value usually means a request plus 75% LTV after 2 to 5 years, or 80% after 5 years.
Executive Order: FHFA may run a pilot where Fannie and Freddie screen home values using automated valuations and cancel eligible PMI automatically, with fewer appraisal and paperwork hurdles.
Who wins: New buyers. Loans made after the pilot launches could have PMI removed automatically as their home value rises.
Who doesn’t: Current owners. Existing loans are not included. If you have PMI today, you still go through the old process: you request it, you may need an appraisal, and you have to meet the LTV and seasoning rules.
What current owners should do: Don’t wait for this to help you, because it won’t. With values up over the last few years, a lot of owners already qualify under today’s rules and just haven’t asked.
Today: A 2024 Fannie Mae pilot waives the lender’s title policy on certain low risk refis under 80% LTV in select areas. Savings of about $500, up to $1,500, in 20+ states.
Executive Order: Make it a permanent, nationwide program at both Fannie and Freddie. Could expand above 80% LTV and add more title assessment providers.
What changed: Pilot becomes permanent and nationwide. Savings must reach borrowers, and lenders must tell you.
Today: Appraisal waivers exist for some refis, along with full documentation rules.
Executive Order: Consider waiving appraisals, income reverification and other documents on limited cash out refis that lower your payment. Consider reducing or eliminating LLPAs and other agency fees.
What changed: Potentially cheaper, faster rate and term refis. Key word is “consider.” Not in effect yet.
Today: Manufactured homes follow federal HUD standards. Modular homes follow state and local codes.
Executive Order: A HUD/FHFA task force has 180 days to align approvals and inspections and cut duplicate reviews.
What changed: Recommendations are coming. Nothing immediate.
Today: USDA Section 502 Direct and VA Native American Direct Loans are made by the government itself, separate from regular USDA and VA loans you get through a lender.
Executive Order: Lower the rates on those direct loans only.
What changed: No rate cut on regular VA or USDA mortgages. If you see a headline saying “VA rates are dropping,” that’s not what this says.
If you have PMI right now and want to know whether you can drop it under current rules, drop your rough balance, time in the loan, and home value in the comments and I’ll walk through it.
Disclaimer: This post is for general educational purposes only and is not financial, legal or tax advice, and it is not a commitment to lend. It is based on public reporting of the executive order signed October 22, 2026, and not on final agency guidance. Many provisions are pilots or directives that FHFA, Fannie Mae, Freddie Mac, HUD, USDA and VA have not yet implemented, and final rules, eligibility and timing may differ from what is described here. Mortgage insurance cancellation on existing loans remains subject to your current servicer’s requirements and your loan’s terms. Talk with a licensed professional about your specific situation.
Drew Fisher, NMLS #44061 | Pure Rate Mortgage LLC, NMLS #2578474 | Equal Housing Opportunity, Verify licensing at NMLS Consumer Access: www.nmlsconsumeraccess.org
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