If the news about the new executive order has you wondering how to remove PMI, start with who it covers. PMI is private mortgage insurance on a conventional loan. The order, signed October 22, 2026, asks the FHFA Director to consider a pilot in which Fannie Mae and Freddie Mac would cancel mortgage insurance on their own once a borrower appears to have enough equity.
By its own text, the pilot would apply only to mortgages made after it’s set up. It doesn’t reach a loan you already have.
On the loan you have, PMI comes off under rules that already exist: automatically, at your request based on the home’s original value, or at your request based on its current value. Here is how each works under Fannie Mae’s Servicing Guide, and when a refinance is worth comparing.
What Does the New Executive Order Say About PMI?
The October 22, 2026 executive order, Executive Order 14438, tells the FHFA Director to direct Fannie Mae and Freddie Mac to set up a pilot program. The pilot would cancel mortgage insurance proactively for borrowers who appear to meet equity and other requirements, if the Director finds that doing so serves the two companies’ interests and the public’s.
The order ties all of it to the Director’s judgment. The two companies get that direction “if he determines that it is in the best interests” of those companies or the agency, and of the American public. The pilot the order describes would periodically review the single-family mortgage loans they own, guarantee or securitize, “using automated valuation models and other available data to assess current market value”.
The order also asks that servicers be required, where the law allows and operations permit, to “notify borrowers promptly when mortgage insurance may be canceled under the pilot program”. It asks them to cut unnecessary documentation requests and appraisal costs where they can.
Will the Order Cancel PMI on the Loan You Have Now?
No. The order describes a pilot for mortgages made after the pilot is established, and the pilot exists only if FHFA sets it up. A loan you already have stays under the removal rules that already apply to it. So the existing rules are the ones that matter for your payment.
The order sets that limit itself. The pilot would be “applicable only to mortgages made after the establishment of the pilot program”.
If you’re shopping for a new loan, ask a loan officer how mortgage insurance on that loan can come off. Whether a pilot ever starts rests with FHFA.
When Does PMI Come Off Automatically?
On its own, under the rules for loans Fannie Mae owns. Under Fannie Mae’s Servicing Guide on ending mortgage insurance, PMI on a one-unit home you live in or a second home ends when the balance is first scheduled to reach 78% of the home’s original value, as long as your payments are current.
Fannie Mae’s Servicing Guide tells the companies that service Fannie Mae loans what to do. It puts the termination date at “the date the principal balance of the mortgage loan is first scheduled to reach 78% of the original value of the property”, provided payments are current on that date.
If the loan’s schedule doesn’t reach 78% before the midpoint of its amortization period, the guide ends it the first day of the month after that midpoint. Neither one needs a request to your servicer, the company you send the monthly payment to.
Can You Ask to Remove PMI at 80% of the Original Value?
Yes, under Fannie Mae’s guide. You can ask your servicer to end it once the balance is first scheduled to reach 80% of the home’s original value, or once it actually reaches that mark. Extra principal payments can move that date up. The guide then checks your payment record and the home’s value.
Under Fannie Mae’s guide, an acceptable payment record means the loan is current when the termination is requested, and that it “has no payment 30 or more days past due in the last 12 months” and “has no payment 60 or more days past due in the last 24 months”.
Then comes the value step. The guide’s instruction to the servicer is one line: “Verify the current value of the property is not less than its original value.” If the value comes back lower than the original value, the guide has the servicer deny the request, unless you pay the balance down to meet the guide’s loan-to-value requirement or the value is verified through a property valuation.
For the basics, here’s what PMI is and whether it is worth paying.
Can a Higher Home Value Get PMI Removed Sooner?
It can, under Fannie Mae’s guide, if you ask. A request based on current value uses the home’s current value in place of its original value. The bar depends on how long the loan has been in place, which the guide calls seasoning. And the value has to be shown with a property valuation.
LTV is the loan-to-value ratio, your loan balance compared with the home’s value. For a one-unit home you live in or a second home, the guide says “the LTV ratio must be 75% or less, if the seasoning of the mortgage loan is between two and five years”, and “80% or less, if the seasoning of the mortgage loan is greater than five years”.
The two-year minimum can be waived in one case: your own improvements raised the value. Then Fannie Mae’s guide puts the LTV at 80% or less. Improvements mean work like a kitchen or bathroom renovation, or added square footage. Upkeep is a different matter: “Repairs that are made to keep the property maintained and fully functional are not considered improvements.”
For the current-value route, the guide calls for “a property valuation based on an inspection of both the interior and exterior of the property”, obtained through Fannie Mae’s servicing system. And the same payment-record test applies.
What If Your Servicer Says No?
Ask for the reasons in writing, then line them up against the rule you used. Under Fannie Mae’s guide, a denial comes with the reasons, including the valuation result. The guide gives the servicer 30 days after the later of your request or its receipt of the valuation to send that notice.
In the guide’s words: “The servicer must notify the borrower if the request for termination is denied and provide the reasons for denial”.
The reasons tell you what to work on. It might be the balance, the payment record, or more time for seasoning. A loan officer can help you weigh whether a refinance is worth comparing.
Is Refinancing a Way to Drop PMI?
Sometimes, but it’s a bigger step than a request to your servicer. A refinance replaces your loan with a new one, with its own rate, closing costs and terms. The new loan comes with its own loan-to-value and mortgage-insurance rules. It’s worth comparing when a servicer request isn’t open to you, or when other goals point that way.
Fellowship’s refinance page puts it this way: “We can evaluate and explain your unique financial situation to help determine whether a refinance might be the right solution for you.” It also says: “From cash-out refinances to rate adjustments, choose what best suits your financial landscape.”
Bring your current statement and your servicer’s answer, if you have one, so the comparison starts from real numbers.
Do FHA Loans and Freddie Mac Loans Follow the Same Rules?
Not necessarily. Fannie Mae’s Servicing Guide covers loans Fannie Mae owns. Freddie Mac, FHA and VA set their own rules, and so does a lender that keeps your loan on its own books. So the first question for your servicer is who owns your loan.
If your loan is an FHA loan, start with how FHA mortgage insurance removal works.
Frequently Asked Questions About Removing PMI
How do you remove PMI from a conventional loan?
Three paths sit in Fannie Mae’s guide for a loan it owns. It ends automatically at 78% of the original value if your payments are current. You can ask at 80% of the original value. Or you can ask on current value, with a property valuation and the seasoning rule. Other investors set their own rules.
Does the new executive order cancel my PMI?
The order describes a pilot program for mortgages made after the pilot is set up, and only if the FHFA Director decides to create it. A loan you already have runs on the rules that already apply to it, so ask your servicer which of those rules fits.
Can I get PMI removed if my home value went up?
Under Fannie Mae’s guide you can ask. For a one-unit home you live in or a second home, the loan-to-value ratio has to be 75% or less with two to five years of seasoning, or 80% or less past five years, shown by a property valuation.
What counts as a good payment record for PMI removal?
Fannie Mae’s guide defines it three ways. The loan is current when you request termination. No payment is 30 or more days past due in the last 12 months. And no payment is 60 or more days past due in the last 24 months.
Do home repairs count toward removing PMI early?
Under Fannie Mae’s guide, improvements can matter when they raise the value, such as a kitchen or bathroom renovation or added square footage. Repairs made to keep the home maintained and fully functional are not improvements. Ask your servicer how the guide treats the work you did.
Should I refinance just to get rid of PMI?
A refinance brings a new rate, new closing costs and its own mortgage-insurance rules, so it is a different decision from a removal request. Check the servicer route against your loan’s numbers first. Then compare the two with a loan officer before you choose.
Questions to Ask Before You Request PMI Removal
Which rule fits your loan decides what you ask for. So settle that first. Knowing how to remove PMI starts with your own paperwork, not a guess about what the home might be worth. Bring your monthly statement to the call, and put these four questions on the list.
- Who owns my loan, and which removal rules apply to it?
- Is my balance scheduled to reach 78% or 80% of the original value, and when?
- Would a request based on current value fit how long I have had the loan?
- How is the property valuation ordered?
If you’d like to compare a refinance with keeping your current loan, you can talk with a Fellowship loan officer about your refinance.
