October 22, 2026 USMI Statement on Presidential Executive Order “Decreasing Housing Costs for the American People”

October 22, 2026

WASHINGTON - Seth Appleton, President of U.S. Mortgage Insurers (USMI), today released the following statement on President Trump's executive order, "Decreasing Housing Costs for the American People," which includes a provision directing the U.S. Federal Housing (FHFA) Director to consider establishing a pilot program for the cancellation of private mortgage insurance (private MI) on future loans.

"We commend the President's focus on lowering costs for future homeowners, and the private mortgage insurance industry is proud to already be delivering on that goal. Private MI is a powerful tool that has helped millions of homebuyers overcome one of the biggest barriers to homeownership: the need for a large cash down payment. Private MI is one of the only costs of homeownership that has declined, with premium rates falling 25% since 2017, driven by robust competition in the market and tax policies enacted in President Trump's first term.

"Private MI is designed to be temporary, and the system already works much the way the order envisions, because when MI is cancelled, a borrower's monthly payment goes down. This is why we supported Director Pulte's recent action aligning the GSEs' policies to allow mortgage servicers to proactively contact current mortgagors who may qualify for MI cancellation through home price appreciation.

"We look forward to working with FHFA on programs that advance our shared goal of expanding affordable homeownership in ways that protect the American taxpayer and uphold the safety and soundness of the GSEs. A pilot program on new originations can test new approaches and help future homebuyers save if home price appreciation responsibly supports earlier cancellation, while still providing the benefits that private MI delivers today: buying a home years sooner, saving tens of thousands of dollars at closing, and deducting premiums at tax time."

Background

Stats:

• Private MI expands access to homeownership. In 2025, more than 800,000 homebuyers used private MI, 65% of them first-time buyers - which saved the average borrower $48,000 in cash at closing - more than $38 billion in down payment savings for homebuyers across the country.
• MI is temporary and consumers already have clear, legally guaranteed cancellation rights. Automatic termination at 78% LTV (22% paid-in equity) is required by the federal Homeowners Protection Act and borrowers can request cancellation at 80% based on home price appreciation if certain conditions are met. Private MI puts private capital ahead of taxpayers. Backed by strong capital standards, mortgage insurers have paid more than $62 billion in claims since 2008 that would otherwise have been absorbed by the GSEs, lenders, and investors.
• The MI industry protects more than $1.6 trillion worth of mortgages ($1.4 trillion in GSE-backed mortgages) with private capital, so taxpayers don't have to.
• Private MI supported more than $300 billion of purchase and refinance mortgage originations in 2025.
• Thanks to the Working Families Tax Cuts signed by President Trump, MI premiums are permanently tax deductible again for eligible homeowners, starting in tax year 2026.

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