New Federal Mortgage Order: What the PMI and Refinance Changes Could Mean for Palm Beach County Homeowners

A new federal executive order aimed at lowering housing costs was signed on October 22, 2026. If you own a home in Jupiter, Palm Beach Gardens, Juno Beach, North Palm Beach, Singer Island, or Tequesta, two pieces of it are worth understanding: private mortgage insurance (PMI) and refinance title costs.

This is a plain-English summary, not a prediction. The order directs the head of the Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac, to act if he determines it is in the best interests of the public and the agencies. It doesn't change anything for homeowners overnight, and details will keep emerging.

What the order says

The order is titled "Decreasing Housing Costs for the American People." Based on the White House text and industry reporting, it directs FHFA to:

• Set up a pilot that cancels mortgage insurance proactively, using automated home valuations, once a borrower meets the equity and other requirements
• Expand its title insurance waiver pilot on refinances into an ongoing, nationwide program
• Consider further refinance cost reductions, described below

It also creates a federal task force on manufactured housing and directs USDA and VA to lower rates on their direct loan programs. Those pieces are less relevant to most Palm Beach County homeowners, so this article focuses on PMI and refinances.

PMI: why this matters

PMI is typically required on conventional loans when the down payment is under 20%. It protects the lender, not you, and it adds to your monthly payment. Annual PMI commonly runs about 0.5% to 1.5% of the original loan amount, depending on credit score, down payment, and loan size.

Today, conventional borrowers can generally request removal once they reach 20% equity. In practice, that means you have to track your home's value, contact your servicer, and sometimes pay for an appraisal.

The order's pilot would flip that process. Fannie Mae and Freddie Mac would periodically estimate current home values using automated models and cancel mortgage insurance proactively once a borrower meets the equity and other requirements. Servicers would be asked to notify borrowers promptly.

In a market like ours, where many homeowners have seen significant appreciation, some people may have more equity than they realize. That's a reason to check, whatever the order ultimately does.

Refinance title costs

When you refinance, a lender's title insurance policy is usually required, and title-related fees are often one of the larger pieces of closing costs. FHFA has been running a pilot that waives that requirement on certain low-risk refinances.

The order directs FHFA to expand that pilot into an ongoing, nationwide program, so Fannie Mae and Freddie Mac can accept an automated title review in place of a lender's title insurance policy on eligible refinances. It also tells FHFA to consider going further: allowing loans above the current 80% loan-to-value limit, removing geographic limits, waiving appraisals and income re-verification on limited cash-out refinances that lower the monthly payment, and reducing certain loan-level fees. Any savings are to be passed through to borrowers.

Two honest caveats:

• Savings may be modest, and rates matter more. One industry voice noted that few people refinance just to save a few hundred dollars on title, and refinance activity is limited at current rates.
• Not everyone agrees. In 2024, attorneys general from 14 states, led by Tennessee, asked FHFA to end the title waiver pilot. They cited fraud risk and the shift of title risk from state-regulated insurers to Fannie Mae. Executive orders can also be revised or reversed later.

What I'd do now

You don't need to act on a headline. But if you want to be ready, here are three simple questions for your lender or loan servicer:

1. "Do I still have PMI, and what would it take to remove it?" Ask what they require and whether they'd use a new appraisal.
2. "Does a refinance make sense for my situation?" Compare your current rate and balance against today's options, including closing costs.
3. "Is a title insurance waiver available for my loan?" Programs and eligibility vary by lender and loan.

To get a feel for your numbers, try the affordability calculator at asweetzrealtor.com/affordability-calculator/.

The bottom line

This order points toward lower costs on two things many homeowners pay for: PMI and refinance closing costs. But it's an early-stage directive, and the real-world impact depends on how FHFA and lenders implement it. The PMI pilot is aimed at future loans, and the refinance changes are things FHFA has been told to consider. I'll keep an eye on developments and share updates.

Sources

• White House, "Decreasing Housing Costs for the American People," Oct 22, 2026: whitehouse.gov
• HousingWire, industry reaction: housingwire.com
• Fannie Mae Lender Letter LL-2026-07: singlefamily.fanniemae.com
• Tennessee Attorney General release (2024): tn.gov
• Experian, PMI cost range: experian.com

This article is for general information only and is not legal, tax, lending, or financial advice. Please consult your licensed lender or loan servicer about your specific situation.

Amanda Sweetz, REALTOR® | SRS | CPRES

Amanda Sweetz is a REALTOR® with Keller Williams Realty of the Palm Beaches and a Florida Registered Paralegal with over a decade of paralegal experience, serving Jupiter, Palm Beach Gardens, and the surrounding communities. Your Next Chapter Is Your Best™