Key Facts

- On October 22, 2026, the President issued a presidential memorandum titled **“Decreasing Housing Costs for the American People.”** The memorandum invokes authority vested by the Constitution and U.S. law. [1]

- **Section 2** directs the Director of the Federal Housing Finance Agency (FHFA) to require the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) – together referred to as the “Enterprises” – to establish a pilot program that proactively cancels mortgage insurance for eligible new mortgages. [1]

- The pilot must use **automated valuation models (AVMs)** or other Director‑approved methods to assess current market value, must notify borrowers promptly when cancellation eligibility arises, and must reduce or eliminate unnecessary appraisal and documentation requirements. [1]

- **Section 3** creates the **Task Force on Manufactured Housing Innovation**, co‑chaired by the Secretary of Housing and Urban Development (HUD) and the FHFA Director, with participation from the Secretaries of Agriculture, Commerce, and Veterans Affairs. [1]

- The Task Force is instructed to submit recommendations to the President **within 180 days** of the memorandum’s issuance, routing the report through the Assistant to the President for Economic Policy. [1]

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Presidential Memorandum Targets Housing Costs

The memorandum opens by declaring that *“the American Dream of homeownership is a vital pillar of our great country.”* It frames the policy goal as a reduction of regulatory barriers and costs that impede homeownership, emphasizing competition, innovation, and the use of **“Super Intelligence”** technologies to lower mortgage‑related expenses. The document is organized into three sections: purpose, proactive cancellation of excessive mortgage insurance, and standardizing the permitting of homes. By placing the mortgage‑insurance pilot and the manufactured‑housing task force together, the administration signals a dual strategy that addresses both financing‑side and supply‑side contributors to housing costs.

**Section 2** focuses on mortgage insurance. It requires the FHFA Director to determine whether the pilot serves the best interests of the Enterprises and the American public before issuing the directive. The pilot applies only to **single‑family mortgage loans** that the Enterprises own, guarantee, or securitize **and that are originated after the pilot’s launch**. The memorandum mandates periodic reviews of these loans using AVMs or other data sources approved by the Director. When a borrower meets applicable equity thresholds—based on the property’s current market value as determined by the AVM—and satisfies all statutory, contractual, and regulatory requirements, the Enterprises must cancel mortgage insurance **proactively**, provided the action is consistent with financial safety and soundness standards.

**Section 3** establishes the Task Force on Manufactured Housing Innovation. Its co‑chairs are the HUD Secretary and the FHFA Director; the Secretaries of Agriculture, Commerce, and Veterans Affairs are designated participants, and additional agency heads may be invited as needed. The Task Force is tasked with developing recommendations that could affect **specifications, certifications, inspections, and approvals** across Federal housing and finance programs. It is also directed to consider **reciprocal recognition of licenses** among agencies. The 180‑day reporting deadline signals an intention to move quickly toward potential regulatory adjustments, though the memorandum does not prescribe any specific rule changes.

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Mechanics of Mortgage Insurance Pilot

The pilot program is limited to the Enterprises—Fannie Mae and Freddie Mac. Only **single‑family mortgage loans** that meet the following criteria are subject to the new review process:

1. The loan is **owned, guaranteed, or securitized** by the Enterprises.

2. The loan is **originated after the pilot’s establishment**.

3. The loan is a **single‑family** residence.

The pilot requires the Enterprises to **periodically assess each qualifying loan** using an AVM or another method approved by the FHFA Director. The AVM‑derived market value serves as the basis for determining whether a borrower’s **equity** meets the applicable threshold for insurance cancellation. The memorandum does not specify the exact loan‑to‑value ratio or equity percentage required; those details are left to the Enterprises’ procedural rules.

In addition to the valuation component, the memorandum obligates the Enterprises to:

- **Establish financial safety‑and‑soundness standards** and payment‑history requirements that must be satisfied before insurance can be cancelled.

- **Require loan servicers**, to the extent permitted by law and operationally feasible, **to promptly notify borrowers** when cancellation eligibility arises.

- **Reduce or eliminate unnecessary documentation, appraisal costs, and other administrative barriers** that could impede the cancellation process.

The record does **not address** the speed at which AVM‑based determinations might be completed relative to traditional appraisal‑driven processes, nor does it quantify the expected cost savings for borrowers.

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Practical Effects on the Mortgage Market

### For Borrowers

The pilot could allow borrowers who attain the required equity level to have their mortgage‑insurance premiums cancelled **earlier** than under existing practices, potentially lowering monthly housing expenses. The memorandum requires servicers to **notify borrowers promptly** when they become eligible for cancellation and to **streamline documentation** requirements. However, the memorandum does **not provide** specific details on the timing of cancellations, the equity threshold, or the magnitude of any cost reduction.

### For the FHFA and the Enterprises

The FHFA Director must first evaluate whether the pilot is in the best interests of the Enterprises and the public before issuing the directive, adding an executive‑level review step. Once approved, the Enterprises will need to:

- Develop or adapt **AVM‑based review systems** capable of periodic loan assessments.

- Create **safety‑and‑soundness criteria** that align with existing regulatory standards.

- Adjust **servicer communication protocols** to meet the prompt‑notification requirement.

The memorandum does **not discuss** whether implementing these systems will require **investments in technology or staff training**; such considerations are outside the scope of the record.

### For the Manufactured‑Housing Sector

The Task Force on Manufactured Housing Innovation is charged with delivering recommendations that could influence **federal permitting and certification processes** for factory‑built homes. The memorandum emphasizes the development of **uniform specifications, certifications, inspections, and approvals** and the possibility of **reciprocal recognition of licenses** across agencies. The record does **not specify** how these recommendations might reshape permitting processes, streamline approvals, or reduce regulatory duplication. Likewise, the memorandum does **not identify** particular stakeholder groups—such as rural development programs, trade partners for prefabricated components, or veteran housing initiatives—that may be affected by the Task Force’s work.

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What to Watch

- **Task Force deadline**: The memorandum requires the Task Force on Manufactured Housing Innovation to submit its recommendations **within 180 days** of the order’s issuance. Given the October 22, 2026 date, the deadline falls around **April 20, 2027**. [1]

- **Pilot start date**: The pilot applies only to mortgages **originated after** the program is established. The memorandum does not set a specific launch date; the Enterprises will determine the operational start based on FHFA guidance. [1]

- **FHFA Director’s determination**: Before the pilot can be implemented, the FHFA Director must decide that the program is in the best interests of the Enterprises and the public. No timeline for this decision is provided in the memorandum. [1]

- **Reporting and public input**: The memorandum does not outline any explicit reporting requirements, filing obligations, or public‑comment procedures for the pilot program beyond internal FHFA and Enterprise processes. [1]

- **Impact assessment**: The record does not contain quantitative estimates of cost savings for borrowers, nor does it discuss potential effects on the Enterprises’ balance sheets or the broader mortgage‑insurance market. [1]

- **Stakeholder effects**: While the Task Force includes secretaries from Agriculture, Commerce, and Veterans Affairs, the memorandum does not detail how its recommendations might affect specific programs or stakeholder groups. [1]

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*This article reflects only the information contained in the presidential memorandum and related public records. Any analysis of potential outcomes beyond the text of the memorandum is outside the scope of the documented sources.*