If you put less than 20% down on a home in Wilmington, Leland, or Hampstead in the last few years, part of your monthly payment likely goes to mortgage insurance. A new federal executive order takes aim at that cost and a few others. Here’s what it says, who it helps (and who it doesn’t, yet), and what you can do about mortgage insurance today.
What the new housing order says
The order, titled “Decreasing Housing Costs for the American People,” was signed on Oct. 22, 2026, and published in the Federal Register on Oct. 28. It directs federal agencies rather than creating a new law, and most of it still has to become actual programs. The pieces that matter locally:
- Proactive mortgage insurance cancellation. If the Federal Housing Finance Agency (FHFA) director finds it’s in the best interest of Fannie Mae, Freddie Mac, and the public, he’s to have them set up a pilot that uses automated valuations to spot borrowers with enough equity and cancel mortgage insurance proactively, with less paperwork and appraisal cost.
- Cheaper refinance title costs. FHFA’s director is likewise to consider expanding a pilot that accepts an automated title review instead of a lender’s title policy on certain refinances into an ongoing nationwide program.
- Factory-built housing. A new HUD- and FHFA-led task force has 180 days to recommend ways to cut federal barriers to manufactured and factory-built homes.
- Lower direct-loan rates. USDA and VA are told to reduce rates on the home loans they make directly, subject to law and funding.
The catch: the PMI pilot is for future loans
The order states that the mortgage insurance pilot applies “only to mortgages made after the establishment of the pilot program.” As Realtor.com pointed out on Nov. 2, that means homeowners who are paying mortgage insurance right now won’t benefit from that part of the order as it’s written. There’s also no launch date or set equity threshold yet.
The title piece covers certain low-risk refinances, not purchases, so it won’t lower closing costs for a first-time buyer in Monkey Junction or Ogden. Realtor.com also quoted American Land Title Association CEO Chris Morton warning that efforts to lower title costs “must also preserve the essential consumer safeguards.”
What you can do about PMI today
Many homeowners don’t realize they may already be able to drop private mortgage insurance (PMI) on a conventional loan.
Your rights under federal law
According to the Consumer Financial Protection Bureau, for most single-family primary residences you can ask in writing to cancel PMI once your balance is scheduled to reach 80% of the home’s original value (generally the lower of the purchase price or the appraisal), or sooner if you’ve paid extra principal. You’ll need a good payment history, no second mortgage, and possibly proof the home hasn’t lost value. Otherwise, PMI generally ends automatically when the balance is scheduled to hit 78%.
Using your home’s current value
Fannie Mae and Freddie Mac can set rules more generous than the law. Under Fannie Mae’s Servicing Guide, a borrower with a one-unit primary home or second home can ask to cancel based on today’s value if the loan-to-value ratio is 75% or less after two to five years, or 80% or less after five years. Major improvements, like a kitchen renovation or added square footage, can waive the two-year wait at 80%. You’ll need no payment 30+ days late in the last 12 months and none 60+ days late in the last 24.
On Sept. 16, 2026, Fannie Mae issued Lender Letter LL-2026-07, letting servicers proactively contact borrowers who may qualify based on current value. Freddie Mac already allowed that, as HousingWire reported on Sept. 15. You still have to make the request, so don’t wait for a call.
Expect your servicer to require a valuation it orders, usually at your cost; a lender quoted by HousingWire put a typical appraisal at $500 to $700. Ask for the exact process first.
FHA loans work differently
FHA mortgage insurance doesn’t follow PMI rules. Under HUD Mortgagee Letter 2013-04, for FHA loans with case numbers assigned on or after June 3, 2013, the annual premium runs 11 years if you put at least 10% down, and for the life of the loan if you put down less. Often the only way out is refinancing into a conventional loan, which only makes sense if the numbers work at today’s rates.
What it means around the Cape Fear
For recent buyers: If you bought with a small down payment and your neighborhood has seen solid sales since, it’s worth asking your servicer whether a current-value cancellation is possible.
For buyers shopping now: Don’t budget around a pilot that doesn’t exist yet. Ask lenders how PMI is priced and when it could come off under current rules. Our guide to comparing Wilmington mortgage lenders walks through what to look for on a Loan Estimate.
For rural and first-time buyers: USDA’s direct loan program serves lower-income buyers in eligible rural areas, which can include parts of Pender and Brunswick counties. See our USDA home loan guide for Pender County. On the VA side, the direct program VA runs is the Native American Direct Loan, which is narrow; most local VA buyers use VA-guaranteed loans from private lenders instead.
For manufactured and modular homes: Federal recommendations won’t override county zoning on their own, which matters in Brunswick County, where manufactured home rules are already being challenged in court.
Frequently asked questions
Will the executive order cancel my current PMI?
Not as written. The pilot covers only mortgages made after it’s set up, but you can still request cancellation under existing rules.
How do I find out when my PMI can come off?
Your closing PMI disclosure shows the first date you can request it. Or ask your servicer about original-value and current-value options.
Does this lower closing costs when I buy?
Not right now. The title provisions target certain refinances, not purchases.
Can FHA mortgage insurance be canceled?
For loans since mid-2013, it lasts 11 years with at least 10% down, or the life of the loan with less.
Talk through your numbers with a local team
Whether you’re trying to drop PMI or planning a purchase, the right move depends on your loan, your equity, and what nearby homes are selling for. We can pull recent neighborhood sales before you call your servicer. Contact Aspyre Collective to get started.
