President Trump’s recent executive order on housing costs has generated headlines, but for the millions of Americans currently paying private mortgage insurance, the immediate reality is more nuanced. The October 22 order outlines a future pilot program for PMI, yet it does nothing to automatically reduce premiums for existing borrowers—a distinction that Orlando-based Mortgage Expert is working to clarify for homeowners.
ORLANDO, FL, UNITED STATES, October 24, 2026 /EINPresswire.com/ — The sweeping housing executive order signed by President Donald Trump aims to lower mortgage costs, including a conditional PMI pilot program that would only apply to loans originated after its establishment. Crucially, it does not mandate the immediate cancellation of private mortgage insurance on loans that already exist. In response, Mortgage Expert is clarifying the options available to current homeowners and stressing why the timing of any potential savings is critical.
“Making PMI reviews more proactive is a useful goal,” said Shahram Sondi, founder of Mortgage Expert in Orlando. “For someone paying PMI today, the next step is to check the cancellation rules on the mortgage they already have.”
The signed order directs Fannie Mae and Freddie Mac to periodically review eligible loans using automated home-value estimates and other data. However, implementation hinges on a determination by the Federal Housing Finance Agency director. Standard requirements regarding payment history and other conditions remain in place, and notably, the order does not specify a launch date for the pilot.
Separate provisions in the order related to refinancing could offer relief to some current homeowners. The order conditionally directs the expansion of a program that accepts alternatives to a lender’s title insurance on eligible refinances. It also requires that any resulting savings be passed through to the borrower and clearly disclosed. Additional proposals, such as certain appraisal waivers and fee reductions, are still under consideration.
What current homeowners can check
For borrowers with lender-paid PMI that they cover, the standard process allows for a written cancellation request once the loan-to-value ratio reaches 80% of the original property value, provided payment history, lien, and property-value conditions are met. Automatic termination is generally scheduled to occur at the 78% mark if the loan is current. For cancellations based on current property value, the rules are different, and simply reaching 20% equity does not automatically qualify a loan.
A lender letter from Fannie Mae dated September 16, 2026, permits servicers to proactively contact borrowers who may qualify based on current value. Freddie Mac had already allowed similar outreach prior to that update. Borrowers do not have to wait for a phone call; they can initiate a request themselves. It’s important to note that this outreach permission is a separate matter from the new pilot program outlined in the executive order.
“Ask your servicer which cancellation route applies, what valuation it requires and when PMI would otherwise end,” Sondi said. “Get those answers before paying for an appraisal or replacing a low-rate mortgage.”
Consider a hypothetical borrower paying $150 monthly in PMI. Avoiding 12 full months of premiums would save $1,800 before factoring in any valuation fee. Actual savings will depend on specific costs and when coverage would otherwise conclude. It’s also worth noting that FHA mortgage insurance operates under a different set of rules.
Why timely savings deserve scrutiny
Historical oversight reports highlight why proactive review is warranted. In its Fall 2021 Supervisory Highlights, the Consumer Financial Protection Bureau detailed instances of missed automatic PMI terminations for borrowers who were current on their payments. In some cases, human error led to inaccurate termination reports. The report also noted that corrections and new quality controls were implemented.
Further back, a 2015 CFPB bulletin described cancellation delays and cited a servicer whose vendor retained premium refunds in escrow past the 45-day deadline. While these historical findings are not related to the October 2026 order, they underscore the importance of monitoring the process.
“The measure of success is when an eligible homeowner stops being charged,” Sondi said. “I would watch the review schedule, the cancellation date and whether the next statement reflects the change.”
For homeowners seeking clarity, Mortgage Expert’s homeowner guide explains the order, the earlier outreach change, and provides a message borrowers can send to their servicer.
About Mortgage Expert
Mortgage Expert, Inc. is a Florida mortgage brokerage founded by Shahram Sondi, a Certified Mortgage Advisor and licensed real estate broker who has originated mortgages since 2001.
Shahram Sondi, NMLS 186790. Mortgage Expert, Inc., NMLS 2412313. Equal Housing Opportunity.
Media contact
Shahram Sondi | Mortgage Expert, Inc.
407-906-6414 | sondi@mortgageexpert.com
Shahram Sondi
Mortgage Expert
+1 407-906-6414
sondi@mortgageexpert.com
Why it matters: While the executive order signals a policy shift aimed at reducing housing costs, its benefits for current homeowners are not automatic. Understanding the existing rules for PMI cancellation is the only immediate path to potential savings, and borrowers who take initiative now could be better positioned to benefit from any future regulatory changes.
