Trump launches manufactured housing task force, orders affordability reforms

President Donald Trump signed an executive order aimed at making housing affordable a few days before the midterm elections.

The multi-part executive order issued Thursday aims to reduce the costs of title and mortgage insurance and promote more affordable manufactured housing. Trump said he wants to see new technologies using artificial intelligence, or “super intelligence,” to speed up the housing market.

“The American dream of homeownership is a vital pillar of our great country,” the order states. “It is my Administration’s policy to reduce regulatory barriers to mortgage origination and costs that hinder homeownership.”

This comes in the middle of a year when Americans are worried about housing affordability. The real estate market has been hit by high interest rates and inflation that has hit material and labor costs. Mortgage rates are expected to remain near decade highs in the near term.

This year, Congress passed the Road to 21st Century Housing Act after months of sometimes contentious negotiations. The bill’s 45 provisions aim to cut red tape and encourage the construction of more housing. Trump refused to sign the bill, although it still became law.

Manufactured Housing Task Force

Among the ideas in the bill are a pilot program allowing federal housing agencies to waive “excessive” mortgage insurance for certain borrowers “who appear to meet equity and other requirements.”

Another provision would establish a task force to promote innovation in manufactured housing, chaired by the director of the Federal Housing Finance Agency. Bill Pulte and Secretary of Housing and Urban Development Scott Turner.

Turner said in a statement that Trump “is committed to bringing even more innovative and affordable housing solutions to the market for the American people.”

“For decades, housing construction has been hamstrung by regulatory red tape, but the Manufactured Housing Innovation Task Force can usher in the next generation of housing by modernizing standards and expediting approvals across government,” Turner added.

Pulte posted on X that the order was “the largest housing executive order in history” and said it could save “thousands” of dollars for millions of Americans.

The task force would incorporate government leaders and make recommendations on how to accelerate innovation in the homebuilding sector.

Title and mortgage insurance reforms

The order directs FHFA to establish a pilot program for Fannie Mae and Freddie Mac aimed at reducing mortgage insurance costs for homeowners.

This program will use automated valuation models to periodically assess home values ​​and will proactively cancel mortgage insurance for borrowers who have met necessary equity requirements, eliminating the need for excessive documentation and costly appraisals.

Typically, homeowners with at least 20 percent equity in their home are not required to carry mortgage insurance, which protects the lender if the borrower defaults.

To reduce costs for homeowners who refinance their mortgages, the order also directs FHFA to expand a program that accepts automated title examinations in place of lenders’ traditional title insurance policies.

Additionally, it seeks to waive appraisal and documentation requirements for certain refinancings while ensuring that any cost savings are passed directly to borrowers.

Industrial groups react to the order

In a statement, Shannon McGahnchief advocacy officer at the National Association of Realtors, praised the administration’s efforts to promote housing affordability.

“We appreciate the President’s continued focus on this critical issue and look forward to reviewing the administration’s proposals in more detail,” McGahn said in the statement. “We also look forward to working with federal policymakers to deliver practical solutions that reduce costs, expand housing opportunities and help more Americans realize their dream of homeownership.”

Bob Broeksmitpresident and CEO of the Mortgage Bankers Association, said in a statement that the group’s member lenders “welcome these latest initiatives to reduce refinancing costs and expand innovative manufactured home options for potential home buyers.”

“MBA appreciates the Trump administration’s continued focus on reducing housing costs by reducing unnecessary regulatory burdens, streamlining mortgage processes and promoting competition in the housing market,” Broeksmit said. “MBA will continue to identify and advocate for additional ways to help homebuyers navigate today’s higher interest rate environment and work with the Administration and Congress to advance policies that produce meaningful results for homeowners, buyers and renters.” »

CEO of the American Land Title Association Chris Morton said in a statement that efforts to improve housing affordability are “critical.” But he cautioned that any effort to reduce title insurance costs “must also preserve critical consumer safeguards that protect Americans’ most valuable assets.”

“The fraud is unaffordable and the threats to homeowners are increasing,” Morton said. “Now more than ever, we must ensure that efforts to reduce housing costs do not pose significant financial risks to American families or the housing finance system as a whole.”