Mortgage Insurance Cancellation: 2026 Changes
If your home has gone up in value, your loan servicer can now tell you that you may be able to drop PMI.
Every item cites an official source (FHFA, Fannie Mae, Freddie Mac, HUD or VA) and the date we checked it. Last checked Oct 22, 2026.
Official, in effect Fannie Mae servicers may now contact you about dropping PMI (Sept 16, 2026)
At FHFA's direction, Fannie Mae now lets loan servicers reach out to borrowers whose loans may be close to or at the loan-to-value needed to cancel mortgage insurance based on the home's current value. You still have to meet the LTV, time-owned and payment-history rules and get an approved valuation.
- Loan balance today: $300,000.
- Home value today: $500,000.
- $300,000 ÷ $500,000 = 60% LTV. Ask your servicer whether you qualify and what valuation they need.
Example numbers are for learning only. Your lender's figures will differ.
Source: Fannie Mae Lender Letter LL-2026-07, Sept 16, 2026 · Fannie Mae Servicing Guide B-8.1-04 · Checked Oct 22, 2026
Also announced: @pulte on X, Sept 15, 2026 (X posts are not official guidance; we cite the official document above.)
Announced, not yet in official guidance Executive order: pilot to cancel mortgage insurance automatically (Oct 22, 2026)
The White House says an executive order signed Oct 22, 2026 directs the FHFA Director to create a pilot that cancels mortgage insurance automatically once borrowers meet equity requirements based on current market value. It also directs FHFA to make its title insurance waiver pilot permanent for refinances, and directs VA and USDA to lower rates on their direct home loans. No FHFA, Fannie Mae or Freddie Mac guidance has been issued yet, so nothing changes for borrowers today.
Source: White House fact sheet, Oct 22, 2026 · Checked Oct 22, 2026
Also announced: @pulte on X, Oct 22, 2026 (X posts are not official guidance; we cite the official document above.)
General information only. Not legal, tax or financial advice. RentToolkit is not a lender, law firm or financial adviser. Mortgage rules change often and lenders can add stricter rules of their own ("overlays"), so confirm with the official source and a licensed loan officer before you act.