A New Executive Order Targets Mortgage Insurance. Here's What It Does and Doesn't Change.

A new executive order could make it easier for some future borrowers to get rid of private mortgage insurance. It does not remove anyone’s PMI today. The proposed pilot would not include existing loans.

Here’s what was announced, what still needs to happen, and what you can do now if you’re paying PMI.

What was announced

On October 22, 2026, an executive order titled "Decreasing Housing Costs for the American People" was signed. The order calls for a conditional pilot program under which Fannie Mae and Freddie Mac would identify qualifying borrowers and proactively cancel their mortgage insurance.

The idea is for Fannie Mae and Freddie Mac to use automated valuation models and other data they already have to spot loans where the homeowner has built enough equity. Eligible borrowers would be notified, and the extra appraisal and paperwork costs that usually come with removing mortgage insurance would be reduced.

The part that matters most: new loans only

Reports say an earlier draft of the order would have reached all loans owned or backed by Fannie Mae and Freddie Mac. The signed version is narrower. The pilot would apply only to mortgages made after it is set up. If you already have a loan, you would not be part of it.

There is also no published start date, no stated equity threshold, and the pilot only moves forward if the FHFA director decides it serves the interests of the agencies and the public. Details are left to the agencies.

Related news from earlier this month

Separately, FHFA Director Bill Pulte announced that Fannie Mae will now let servicers reach out to borrowers who may qualify to drop private mortgage insurance (PMI). Freddie Mac already allowed this. It does not cancel anything automatically. Borrowers still have to qualify, and a new appraisal, which one lender quoted at roughly $500 to $700 depending on the market, is commonly part of the process.

How PMI removal works today

Under the Homeowners Protection Act, PMI on a conventional loan ends automatically when your balance is scheduled to reach 78% of the home's original value. You can ask to have it removed earlier. Commonly that means reaching 80% loan-to-value on your original payment schedule, or using a new appraisal to show 75% for loans two to five years old, or 80% for older loans. Your servicer's rules and your loan's payment history requirements apply, so it is worth calling them to ask what they need.

Chezney's Take

I like the direction here. Mortgage insurance is a real monthly cost, and plenty of people stay in it longer than they need to because nobody told them they could ask out.

But I would keep expectations low for now. This is a pilot, it is limited to future loans, and there is no timeline. Nothing about your payment changes today because of this order.

If you are a buyer putting less than 20% down, the practical takeaway is simple: PMI is not permanent on a conventional loan. It is worth knowing the path to remove it when you are choosing a loan, and what your home would need to be worth to get there. FHA mortgage insurance works differently, and in many cases it stays for the life of the loan, so it is a good thing to compare side by side.

If you already own a home and pay PMI, you do not have to wait for any pilot. Check your balance against your home's likely value and call your servicer to ask what they need to review it.

Not sure where you stand? You don't have to have it figured out before you reach out. Tell me where you are, and my team and I will look at the whole picture.

---

This post is for information only and is not financial, legal or tax advice. Program details can change, and the order's implementation has not been finalized. Chezney Wosick, Loan Originator, NMLS #2326451.