Trump Launches Task Force on Manufactured Homes and Orders Affordability Reforms

President Donald Trump has signed an executive order aimed at housing affordability with days to go before the midterm elections.

The multipart executive order published on Thursday aims to reduce costs for title and mortgage insurance and promote more affordable manufactured housing. Trump said he wanted to see new technologies that use artificial intelligence, or "super intelligence," to accelerate the housing market.

"The American Dream of homeownership is a vital pillar of our great country," the order states. "It is the policy of my Administration to reduce regulatory barriers to mortgage origination and costs impeding homeownership"

This comes amid a year Americans are concerned about housing affordability. The housing market has been hammered by high interest rates and inflation hitting costs of materials and labor. Mortgage rates are likely to remain near decade highs for the near term.

This year, Congress passed the 21st Century Road to Housing Act after months of sometimes-contentious negotiations. The bill's 45 provisions are aimed at cutting red tape and encouraging the construction of more homes. Trump refused to sign the bill, though it still became law.

Manufactured housing task force

Among the ideas in the bill are a pilot program for federal housing agencies to cancel "excessive" mortgage insurance for select borrowers "who appear to satisfy equity and other requirements."

Another provision would establish a task force aimed at promoting innovation in manufactured housing, to be chaired by Federal Housing Finance Agency Director Bill Pulte and Secretary of Housing and Urban Development Scott Turner.

Trump "is committing to bring even more innovative and affordable housing solutions to market for the American people,” Turner said in a statement.

“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 added.

Pulte posted to X that the order was "the greatest Housing Executive Order in History" and said it could save "thousands" of dollars for millions of Americans.

The task force would incorporate over government leaders and create recommendations for how to accelerate innovation in the homebuilding industry.

Reforms to title and mortgage insurance

The order directs FHFA to establish a pilot program for Fannie Mae and Freddie Mac aimed at reducing mortgage insurance costs for homeowners.

This program will use automated valuation models to periodically assess home values and proactively cancel mortgage insurance for borrowers who have met the necessary equity requirements, eliminating the need for excessive documentation and costly appraisals.

Typically, homeowners with at least 20% equity in their home are not required to carry mortgage insurance, which protects the lender in the event of a borrower default.

To lower costs for homeowners who refinance their mortgage, the order also directs the FHFA to expand a program that accepts automated title reviews in place of traditional lender’s title insurance policies.

As well, it seeks to waive appraisals and documentation requirements for certain refinances while ensuring that all cost savings are directly passed on to the borrowers.

Industry groups react to the order

In a statement, Shannon McGahn, chief advocacy officer at the National Association of Realtors®, lauded the administration's efforts to promote housing affordability.

"We appreciate the President’s continued focus on this critical issue and look forward to reviewing the Administration’s proposals in greater detail," McGahn said in the statement. "We also look forward to working with federal policymakers to advance practical solutions that lower costs, expand housing opportunities, and help more Americans achieve the dream of homeownership.”

Bob Broeksmit, president and CEO of the Mortgage Bankers Association, said in a statement that the group's lender members "welcome these latest initiatives to reduce the costs of refinancing and expand innovative manufactured housing options for potential homebuyers."

“MBA appreciates the Trump administration’s continued focus on lowering housing costs by reducing unnecessary regulatory burdens, streamlining mortgage processes, and promoting competition across the housing market," said Broeksmit. “MBA will continue to identify and advocate for additional ways to help homebuyers navigate today’s higher interest rate environment and to work with the Administration and Congress to advance policies that deliver meaningful results for homeowners, homebuyers, and renters.”

American Land Title Association CEO Chris Morton said in a statement that efforts to improve housing affordability are "critical." But he warned that any effort to bring title insurance costs down "must also preserve the essential consumer safeguards that protect Americans' most valuable assets.

"Fraud is unaffordable, and the threats facing homeowners are growing," said Morton. "Now more than ever, we need to ensure that efforts to lower housing costs do not shift significant financial risks onto American families or the broader housing finance system."