The Federal Housing Finance Agency (FHFA) has issued an announcement claiming that “American homebuyers are about to get a break” thanks to updates to home insurance rules that are designed to “fix expensive, stupid Biden-era requirements with simple, common-sense updates that respond to today’s skyrocketing insurance prices.”
According to the FHFA, Fannie Mae and Freddie Mac will begin accepting Actual Cash Value (ACV) coverage on roofs for single-family homes and condos while the rest of the property continues to receive Replacement Cost Value (RCV) protection. The agency added the “maximum per-unit deductible” rule has been “simplified,” resulting in cost savings for homeowners.
More in-depth explanations of the changes are offered on the Fannie Mae and Freddie Mac websites.
“Thanks to President Trump’s landslide victory, we are replacing a disruptive and expensive Biden insurance mandate with commonsense policies for today’s market,” said FHFA Director Bill Pulte. “Lower insurance costs and mortgage rates shrink the monthly payment of a new mortgage, giving new homebuyers confidence that they can afford the American dream.”
