On the Hill is NAMB's bi-weekly read on what's happening in Washington and why it matters to mortgage brokers.
Each issue cuts through the noise to bring you the federal policy, legislation, and regulatory moves shaping your business, along with the context and action items you need to stay ahead.
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President Trump has signed an executive order aimed at lowering mortgage and housing costs. It directs Fannie Mae, Freddie Mac, and federal agencies to cut specific homeownership expenses, and it could touch several corners of a broker's business. Here is what the order does, what is still unknown, and what it could mean for you.
“We are glad to see Washington focused on the real costs that keep families out of homeownership. A signed order is a starting point, not the finish line. What matters now is how FHFA, USDA, and VA carry it out. NAMB will be at the table to make sure these changes actually lower costs for borrowers, stay within the law, and protect the broker channel that keeps this market competitive. Our advice to members is simple: watch for the agency guidance, and do not change how you do business until it arrives.", Michael Farrell, CRMS, NAMB President
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On October 22, President Trump signed an executive order the White House describes as decreasing housing costs for Americans. The move follows a week of reporting on a circulating draft, and it lands with the midterm elections on November 3 as the backdrop. The administration released a fact sheet the same day, though the full text of the order has not yet been published.
The order directs Fannie Mae, Freddie Mac, and several federal agencies to take steps to lower mortgage, refinance, and homeownership costs. Because the order mostly directs agencies to build programs and set new terms, its real-world effect will depend on the guidance those agencies issue next.
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According to the White House fact sheet, the order directs four main actions:
- Proactive mortgage insurance cancellation. FHFA must create a pilot program that proactively cancels borrowers' mortgage insurance once they meet equity requirements based on current market value, removing a monthly cost for qualifying homeowners.
- Permanent title insurance waiver. FHFA must expand the existing title insurance waiver pilot into a permanent program, letting more borrowers use lower-cost alternatives to title insurance and reducing refinance closing costs.
- Lower USDA and VA loan rates. The Secretaries of Agriculture and Veterans Affairs must reduce interest rates on the single-family home loans made directly by their departments. No target rates were given.
- Manufactured housing task force. The order establishes a Task Force on Manufactured Housing Innovation to improve quality and lower the cost of factory-built homes eligible for federal housing programs.
Worth noting: earlier draft reporting also described a review of loan-level price adjustments (LLPAs), appraisal requirements, and the use of AI by the GSEs. The White House fact sheet does not mention those items. Until the full order text is published, treat those as unconfirmed rather than part of the signed order. |
What It Could Mean for Brokers. |
A refinance and MI-removal opening. Lower title and refinance costs, paired with proactive MI cancellation, give you a concrete reason to reconnect with past clients, even with rates near 7%. A borrower who cannot benefit from a rate-and-term refi today might still benefit from dropping mortgage insurance or a lower-cost refinance once the programs are live.
Your title partners, reshaped. Making the title waiver a permanent program removes a closing cost, but it also changes the title workflow and your title partners' role. Expect strong and differing views across the industry, as we saw when the pilot first expanded.
Veteran and rural borrowers. Lower USDA and VA direct-loan rates mainly affect those agencies' own direct lending rather than the bulk of broker-originated VA and USDA guaranteed loans, so read the fine print before setting borrower expectations.
Product mix. A manufactured-housing push could grow a niche many brokers underuse.
The big caveat. Each of these runs through a separate agency program, and some provisions raise questions about how they fit existing mortgage law and agency authority. The path from a signed order to a changed loan file could be long, and in places uncertain. |
Talk of an imminent order began circulating last week at the Mortgage Bankers Association's Annual Convention in Chicago, and reporting in the days before the signing described a split inside the administration over timing and substance. FHFA Director Bill Pulte was reported to be pushing to sign quickly.
Some of the concerns raised before the signing still stand. Housing groups have cautioned that lowering the cost of borrowing without also adding supply can push home prices higher, which could work against the order's stated goal. There are also open questions about how each directive will hold up against existing law and agency authority. These are worth watching as the agencies move to implement.
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- Do not overhaul yet. Keep your disclosures, pricing, and borrower advice where they are until the agencies issue implementing guidance.
- Get your database ready. Scan your past clients now for refinance and mortgage-insurance-cancellation candidates, so you can move quickly once the programs go live.
- Talk to your partners. Ask your title and wholesale partners how a permanent waiver program would change your closings, and where they stand.
- Read the fine print on rates. Confirm whether the USDA and VA rate cuts reach the loans you actually originate before you set borrower expectations.
- Tell us what you see. Share your on-the-ground perspective with NAMB Government Affairs at GovernmentAffairs@namb.org. NAMB is engaged with FHFA and the agencies and will advocate for implementation that genuinely lowers borrower costs while protecting consumers and the broker channel.
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- The full order text. The fact sheet is a summary. Watch for the published order and its EO number to confirm the complete list of provisions, including whether LLPA or appraisal items are in it.
- FHFA guidance. The design of the mortgage insurance cancellation pilot and the permanent title waiver program will determine the real impact.
- USDA and VA. The actual rate changes on their direct single-family loans.
- November 3. The midterm elections, the backdrop reporting has tied to the timing.
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