President Donald Trump signed an executive order on Thursday, aimed at reducing mortgage costs and supporting manufactured housing development. Separately, Treasury proposed rules implementing restrictions on institutional purchases of single-family homes, while HUD expanded financing eligibility for build-to-rent communities. (The Hill | White House, Oct. 22)

Executive Order

• The Oct. 22 executive order directs the Federal Housing Finance Agency (FHFA) to establish a mortgage insurance cancellation pilot through Fannie Mae and Freddie Mac, subject to safety and soundness and other requirements. The pilot would proactively identify eligible borrowers and apply to mortgages originated after the program begins. (White House EO | Politico, Oct. 22)

• To reduce refinancing costs, the order directs FHFA to expand alternatives to lender’s title insurance for eligible refinances, with savings passed through to borrowers.

• The order also establishes a federal task force on manufactured housing to recommend ways to streamline approvals, reduce duplicative requirements and expand manufactured and factory-built housing production. Recommendations are due within 180 days. (Reuters, Oct. 22)

Treasury’s Proposed Housing Rules

• Treasury’s Oct. 22 proposed rule would implement Section 1001 of the 21st Century ROAD to Housing Act, which codified key requirements of President Trump’s January executive order, Stopping Wall Street from Competing with Main Street Homebuyers. (Treasury Press Release, Oct. 22)

• Beginning Jan. 7, 2027, large institutional investors generally may not purchase—or enter into contracts to purchase—single-family homes unless the transactions qualify for a statutory exception. The law’s definition includes entities engaged in the single-family housing business with direct or indirect investment control over at least 350 homes. (Treasury Press Release, Oct. 22)

• The proposal outlines how exceptions would apply to build-to-rent, renovate-to-rent and homeownership programs, including standards for substantial rehabilitation, and financial assistance to help renters purchase homes. (PoliticoPro, Oct. 22)

• Treasury also proposes clarifications addressing passive investment, ownership and property-control arrangements, certain debt-related transactions, and transfers between large institutional investors.

• Treasury said its approach seeks to accommodate different investment, construction and property-management structures while avoiding unnecessary disruption to housing supply, homebuilding, rehabilitation and capital formation.

• Rep. Maxine Waters (D-CA), Ranking Member on the House Financial Services Committee, welcomed Treasury’s proposal but urged the department to ensure the rules protect homeownership opportunities for families and prevent investors from circumventing the restrictions. (Rep. Waters Press Release, Oct. 22)

• The Real Estate Roundtable (RER) welcomes member input as it prepares comments on Treasury’s proposed investor rules and their implications for housing supply and private investment. Comments are due 30 days after publication in the Federal Register.

Build-to-Rent Financing

• HUD announced Oct. 14 that build-to-rent communities—including single-family homes, duplexes and triplexes—are now eligible for FHA-insured financing under the same general terms as traditional multifamily rental developments.

• Effective immediately, the policy expands financing options for new construction and the acquisition or refinancing of recently developed rental communities. (HUD Press Release, Oct. 14)

Government Sponsored Enterprises (GSEs)

• Treasury Secretary Scott Bessent said Tuesday that the administration expects to pursue an overhaul of Fannie Mae and Freddie Mac over the next two years, setting a new timeline for addressing their government conservatorship, which began during the 2008 financial crisis.  (Politico Pro, Oct. 20)

Sec. Bessent said the administration’s priority is ensuring that any changes do not increase mortgage rates relative to Treasury bonds. (Politico Pro, Oct. 20)