“Our lender members welcome these latest initiatives to reduce the costs of refinancing and expand innovative manufactured housing options for potential homebuyers,” said Bob Broeksmit.
President Donald Trump has signed an executive order directing federal agencies to lower mortgage rates on single-family loans and create a task force to standardize factory-built housing, as Scotsman Guide reported. Titled “Decreasing Housing Costs for the American People,” the directive aims to reduce refinance costs, spur manufactured home production, and tackle regulatory barriers in the housing market.
Directives Issued to USDA and VA on Single-Family Mortgage Rates
The executive order charges the U.S. Department of Agriculture and the Department of Veterans Affairs with lowering mortgage rates on single-family loans they underwrite and guarantee. A copy of the order uploaded to the government’s website shows that implementation of several measures requires industry input. These proposals include waiving appraisals and income reverification for certain cash-out refinances.
Other steps move faster. The directive reduces loan-level pricing fees on eligible refinances. It also instructs Fannie Mae and Freddie Mac to review their portfolios for borrowers eligible for proactive cancellation of excessive mortgage insurance, keeping equity and contractual requirements in mind.
New Federal Task Force Targets Factory-Built and Modular Housing Production
To address supply constraints, the order establishes a task force for manufactured and factory-built housing. The group includes the Department of Housing and Urban Development, the Commerce Department, the USDA, the VA, and the Federal Housing Finance Agency. HUD Secretary Scott Turner and FHFA Director Bill Pulte will co-chair the task force.
Industry Leaders and Regulators Weigh In on Sweeping Policy Shifts
“For decades, home building has been crippled by regulatory red tape, but the Task Force on Manufactured Housing Innovation can usher in the next generation of housing by modernizing standards and speeding up approvals across government,” Turner said in a press release. Writing on social media, Pulte called the directive the greatest housing executive order in history, stating that millions of Americans will save thousands of dollars.
Industry groups responded to the White House directive with support for its focus on cutting refinance costs and expanding housing supply. Bob Broeksmit, president and CEO of the Mortgage Bankers Association, issued a statement regarding the initiative.
Implementation and Next Steps for Federal Housing Agencies
Broeksmit added that the association will work with federal agencies toward a timely and thorough implementation of the policies.
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