Key directives include:

Mortgage insurance cancellation: If the FHFA director finds it in the public interest, the order requires Fannie Mae and Freddie Mac to run a pilot that uses automated valuation models to identify borrowers whose equity meets the requirements for cancelling private mortgage insurance. The pilot applies only to mortgages made after it is established.

Refi costs: FHFA is directed to expand and make permanent its pilot program that waives lender's title insurance on eligible refinances. The order also calls for waiving appraisals and income reverification on certain limited cash-out refinances that lower the borrower's payment, and for reducing or eliminating loan-level price adjustments on those loans.

Direct loan rates: The Agriculture and Veterans Affairs secretaries are directed to reduce interest rates on certain direct loans.

Manufactured housing: A new task force to be co-chaired by the HUD secretary and the FHFA director is charged with encouraging modern construction methods and aligning federal specifications, inspections, and approvals.

With mortgage rates above 7%, the administration is aiming to cut upfront closing costs and some monthly payments. Analysts at NYC-based financial firm Keefe, Bruyette & Woods called the order's impact “likely limited,” and noted that refinancing activity remains weak at current rates. FHFA Director Bill Pulte has separately signaled possible changes to loan-level price adjustments and credit report requirements.

What it Means for Co-op & Condo Borrowers

For co-op and condo owners, the order offers limited near-term relief—most of it aimed at people refinancing rather than buying. Condo borrowers have somewhat more to gain than co-op borrowers.

Pricing fees: The order calls for reducing or eliminating loan-level price adjustments (LLPAs) on certain limited cash-out refinances that lower a borrower’s payment. Fannie Mae’s matrix charges attached condos an add-on of up to 0.75% at higher loan-to-value ratios, but it does not apply to co-ops. Co-op loans pay only the base credit-score and LTV adjustments. The order doesn’t extend this relief to purchases.

Mortgage insurance: The order directs FHFA, if it deems it appropriate, to require a pilot using automated valuation models to identify borrowers who meet equity requirements for cancellation. It covers only loans made after the pilot is set up, and it’s not yet clear how well automated valuations work for condos and co-ops, or whether the pilot will include them.

Title insurance: The order moves FHFA to expand its pilot waiving lender’s title policies on eligible refinances. Fannie Mae reports savings of roughly $500 to $1,500 per loan from its existing title programs. The pilot currently operates in limited regions, and it’s unclear whether it covers condo loans. Co-op share loans generally don’t use a lender’s title policy, so co-op borrowers are unlikely to benefit.

What it doesn’t change: Fannie Mae and Freddie Mac condo project standards stay in place, including Fannie’s increase in the minimum reserve allocation from 10% to 15% of assessment income, effective for loan applications dated January 4, 2027.