NAR Statement on FHFA’s Move to Educate Borrowers on Unnecessary Mortgage Insurance

WASHINGTON (September 17, 2026) - Today, NAR Executive Vice President and Chief Advocacy Officer Shannon McGahn released the following statement after the FHFA announced a move to help make borrowers aware of when they no longer need to pay mortgage insurance:

"The National Association of REALTORS® appreciates the latest effort by FHFA Director Bill Pulte to reduce the burden on homeowners. Mortgage insurance is a critical tool for helping more Americans achieve homeownership, particularly for buyers who may not have the ability to make a large down payment. At the same time, consumers should be aware when mortgage insurance is no longer needed and should have the information necessary to make informed decisions about their finances. This change will put more money in some homeowners' pockets, allowing them to pay down debt, save for needed home improvements, build their savings, or put those dollars toward their next home purchase. Helping homeowners better understand their mortgage costs and ensuring they are not paying for coverage they no longer need can strengthen household finances and support long-term homeownership."

Mortgage insurance, or another form of credit enhancement, is generally required for Fannie Mae or Freddie Mac financing when a homebuyer makes a down payment of less than 20%. It is no longer required when the mortgage has fallen below 78% of the home's value, either through monthly principal payments or home price appreciation. Prior to this announcement, Fannie Mae restricted when servicers could inform consumers that mortgage insurance was no longer necessary.

About the National Association of REALTORS®

The National Association of REALTORS® is involved in all aspects of residential and commercial real estate. The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTOR® and subscribes to its strict Code of Ethics. For free consumer guides about navigating the homebuying and selling transaction processes - from written buyer agreements to negotiating compensation - visit facts.realtor.

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