Brokers’ lobby sees a “massive win,” yet says FHFA must write the rules before savings arrive
The Broker Action Coalition (BAC) is calling President Donald Trump’s housing executive order a “major opportunity” to cut homeowners’ costs. The group also warns that nothing changes until federal regulators act.
In a release, BAC said the order, “Decreasing Housing Costs for the American People,” directs housing officials to pursue proactive cancellation of private mortgage insurance (PMI) and cheaper refinancing on loans backed by Fannie Mae and Freddie Mac. BAC describes itself as a 501(c)(4) nonprofit that unites independent mortgage brokers.
‘Not available immediately’
BAC stressed the order is a directive, not a finished program. The Federal Housing Finance Agency (FHFA) and the two government-sponsored enterprises must develop or expand programs, subject to law, eligibility rules and safety-and-soundness standards. Several refinance reforms are for FHFA “to consider,” it said.
On PMI, BAC said Fannie and Freddie would periodically review loans using automated property valuations. Eligible borrowers would be notified, and servicers would cut appraisal and paperwork costs. For loans originated after a pilot starts, PMI would be canceled proactively once requirements are met.
“Homeowners should not have to navigate unnecessary hurdles to stop paying mortgage insurance when they meet the requirements for cancellation. These costs have a direct impact on household budgets. By putting borrowers first and modernizing outdated processes, this order creates an opportunity to deliver meaningful relief,” Jamie Cavanaugh, BAC’s CEO, said.
The $2,390 estimate
On refinances, BAC highlighted a directive to expand FHFA’s 2024 title acceptance pilot into a permanent, nationwide program. It would allow automated title reviews in place of a lender’s title policy. FHFA is also told to consider waiving appraisals and income re-verification on some limited cash-out refinances, and to reduce or eliminate loan-level price adjustments.
BAC estimated that a $500,000 refinance could save about $2,390 in total. That is $1,290 in lender’s title insurance, $600 for an appraisal and $500 in underwriting fees. It said title costs can reach $2,835 at that loan size, and that actual savings depend on eligibility and what FHFA implements.
“This is a massive win for American homeowners. We’re talking about reforms that could cut refinancing costs by nearly $2,400 on an illustrative $500,000 loan, as well as a new pilot that would proactively cancel mortgage insurance once appropriate equity thresholds have been met. That’s real money,” said Brendan McKay, BAC’s chief advocacy officer.
Beyond BAC
Other reporting generally matches BAC’s account of the order. A law-firm summary confirms the PMI pilot covers eligible loans originated after the program begins. Under the current title pilot, a refinance qualifies with a loan-to-value ratio below 80% and clear title. The order asks FHFA to loosen those limits.
The $2,390 figure is BAC’s own estimate, and the order does not put a dollar amount on savings. The American Land Title Association urged that cost cuts preserve homeowner protections and not shift risk to consumers and taxpayers. The Mortgage Bankers Association and National Association of Realtors welcomed the order.
What brokers should watch
Refinance demand is also limited by rates. Freddie Mac put the 30-year fixed average at 7.40% on Oct. 15. McKay said more Americans could use lower rates “when they arrive.” Brokers will be watching whether FHFA’s rules cut costs and paperwork on the refinances the group highlighted.
