Trump directs Fannie Mae and Freddie Mac to launch mortgage insurance pilot
What happened
On October 23, 2026, Donald Trump signed an executive order directing Fannie Mae and Freddie Mac to begin pilot programs aimed at reducing housing costs. The program uses Automated Valuation Models (AVMs) to estimate current market value and identify borrowers eligible for mortgage insurance cancellation, provided they meet equity requirements. The signed order restricts the pilot to mortgages made after its establishment, unlike an earlier draft that would have applied it to all mortgages purchased by the government-sponsored enterprises.
From housingwire.com
Why it matters
The order is designed to potentially save mortgage borrowers thousands of dollars. Keefe, Bruyette & Woods analysts stated that the order was positive for mortgage insurers and benign for both mortgage and title insurers. U.S. Mortgage Insurers noted that when mortgage insurance is cancelled, a borrower’s monthly payment decreases.
From housingwire.com
Who's involved
- Donald TrumpSigned the executive order mandating the pilot programs.
- Fannie MaeDirected to create the AVM pilot program for mortgage insurance cancellation.
- Freddie MacDirected to create the AVM pilot program for mortgage insurance cancellation.
- Keefe, Bruyette & WoodsProvided analysis stating the order was positive for mortgage insurers.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Fannie MaeSpeculative
Might see changes in costs or revenue related to the cancellation of mortgage insurance.
- Freddie MacSpeculative
Might see changes in costs or revenue related to the cancellation of mortgage insurance.
- Keefe, Bruyette & WoodsSpeculative
Could see changes in investment valuations based on the order's impact on mortgage insurers.
Keep exploring
The entities involved
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Donald Trump
American businessman and politician (born 1946), President of the United States (2017–2021; since 2025)
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Fannie Mae
government-backed financial services company
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Freddie Mac
American government-sponsored enterprise