On October 22, President Donald Trump signed an executive order, “Decreasing Housing Costs for the American People“.
This order aims to make homeownership more affordable by cutting red tape, lowering mortgage-related fees, and encouraging tech-driven innovation in the housing market. The primary goal is to lower the overall cost of buying or refinancing a home by modernizing how properties are valued and how mortgages are processed.
To help existing homeowners, the order introduces measures to automatically lower monthly payments. First, it creates a pilot program that uses automated data to track home values so that private mortgage insurance (PMI) can be proactively canceled as soon as a homeowner builds enough equity, skipping the usual hassle and cost of paperwork. Second, it expands a nationwide program allowing homeowners to use automated property title reviews instead of buying traditional, expensive lender’s title insurance when refinancing, with the requirement that these savings be passed directly to the consumer. Additionally, the Department of Agriculture and the Department of Veterans Affairs are directed to lower interest rates on home loans they issue directly.
And third, to lower the cost of building new homes, the order establishes a Task Force on Manufactured Housing Innovation. This group is tasked with creating a streamlined, federal system for approving factory-built and manufactured homes. By eliminating duplicate regulations and encouraging advanced, automated manufacturing techniques, the initiative aims to reduce the time and cost required to bring affordable new homes to the market.
Read the executive order here.
Read the fact sheet here.
NAED commented on the order:
“NAED applauds the President for recognizing the need to increase the availability of affordable housing, and his action represents a step in right direction. In addition to this Executive Order, NAED looks forward to working with the House, Senate, and the Administration help pass commonsense legislation in the upcoming 120th Congress. “
NAHB made the following statement:
“NAHB commends President Trump and his administration for making housing a national priority,” said Bill Owens, chairman of the National Association of Home Builders (NAHB). “The president’s executive order will help reduce single-family housing and mortgage costs. We urge the administration to continue its efforts to reduce regulatory burdens to make housing more affordable for all Americans.”
Tagged with housing, NAHB, Trump