Trump Signs Order Aimed at Cutting the Monthly Costs of Owning a Home

President Donald Trump signed an executive order on Thursday aimed at reducing the costs of single family home ownership and mortgages, the White House said. The order does not target the price of a house itself. It goes after the monthly charges and closing costs that follow a purchase, and most of its steps would lower costs once owners have built up equity in their homes, or when they refinance.

Mortgage insurance that ends on its own

The order directs Bill Pulte, the director of the Federal Housing Finance Agency, to create a pilot program that would cancel borrowers' mortgage insurance premiums proactively once they have satisfied their equity requirements, based on the current market value of the home. The White House said the step "will eliminate a large monthly expense for qualifying Americans across the country." Mortgage insurance premiums are a monthly charge carried by many borrowers who buy a home with a small down payment, and they can run for years into a loan.

Cheaper refinancing, factory built homes

The order also directs the FHFA to expand its title insurance waiver pilot into a permanent program. The White House said that would let more borrowers use lower cost alternatives to title insurance, reducing the closing costs of a refinance and the monthly expenses that come with owning a home.

A new Task Force on Manufactured Housing Innovation is charged with raising the quality of factory built housing and lowering its cost, by bringing modern manufacturing methods to homes that qualify for federal housing programs.

The order directs the secretary of Agriculture and the secretary of Veterans Affairs to reduce interest rates on single family home loans made by their departments. The Agriculture Department runs home loan programs aimed at rural buyers, and the VA loan program serves veterans and service members.

Signed days before the midterms

The signing comes less than two weeks before the November 3 midterm elections. Buyers still face high mortgage rates, and the supply of homes for sale continues to lag demand, which keeps prices high. HousingWire, a trade publication that covers the mortgage industry, said it reviewed a draft of the order on Monday after obtaining it from three sources. The publication noted that a fact sheet appeared on Thursday while the final text of the order had not yet been posted on the White House website.