Trump signs housing executive order; mortgage insurers rally 1.5-4% on relief that cancellation pilot is forward-only, not retroactive
What happened
President Trump signed an executive order Thursday, 'Decreasing Housing Costs for the American People,' directing the Federal Housing Finance Agency to launch a pilot program that proactively cancels borrowers' mortgage insurance premiums once equity requirements are met based on current market value. The White House billed it as an affordability measure. The order also permanently expands the FHFA's title-insurance waiver pilot for refinancings, creates a Task Force on Manufactured Housing Innovation, and directs the Agriculture and Veterans Affairs secretaries to reduce interest rates on single-family loans their departments make. Shares of private mortgage insurers — Enact, Essent, MGIC, and Radian — rose 1.5% to 4% on Friday.
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Who’s affected
- Private mortgage insurers: Enact Holdings (ACT), Essent Group (ESNT), MGIC Investment Corp. (MTG), Radian Group (RDN) — shares rose 1.5% to 4% Friday. The relief trade removes a feared retroactive cancellation overhang on their in-force books. Ancillary beneficiaries: homebuilders and lenders exposed to USDA/VA loan volumes (lower rates), title-insurance alternatives on refinancings, and manufactured-housing names via the new Task Force on Manufactured Housing Innovation.