New Executive Order Aimed at Lowering Housing Costs

The President issued an executive order entitled “Decreasing Housing Costs for the American People,” which directs federal agencies to take various actions intended to reduce mortgage and homeownership costs.

Among other things, the new executive order:

• Directs the Federal Housing Finance Agency (FHFA) to have Fannie Mae and Freddie Mac establish a pilot program that will use automated valuation tools to regularly reevaluate properties’ current market values and proactively cancel borrowers’ mortgage insurance once they meet minimum equity requirements;

• Expands an existing FHFA title-acceptance pilot into an ongoing, nationwide program under which Fannie Mae and Freddie Mac may accept an automated title review in lieu of a lender’s title insurance policy for eligible refinances;

• Instructs USDA and VA to reduce interest rates for single-family home loans made directly by the agencies; and

• Establishes a multi-agency task force led by HUD and FHFA to evaluate and recommend ways to expand the use of modern manufacturing methods in the production of manufactured and other factory-built housing eligible for federal housing programs.