diff --git a/etc/login.defs b/etc/login.defs
index cd2597dc..a2f8cd50 100644
--- a/etc/login.defs
+++ b/etc/login.defs
@@ -195,12 +195,17 @@ KILLCHAR	025
 # Default initial "umask" value used by login(1) on non-PAM enabled systems.
 # Default "umask" value for pam_umask(8) on PAM enabled systems.
 # UMASK is also used by useradd(8) and newusers(8) to set the mode for new
-# home directories.
+# home directories if HOME_MODE is not set.
 # 022 is the default value, but 027, or even 077, could be considered
 # for increased privacy. There is no One True Answer here: each sysadmin
 # must make up their mind.
 UMASK		022
 
+# HOME_MODE is used by useradd(8) and newusers(8) to set the mode for new
+# home directories.
+# If HOME_MODE is not set, the value of UMASK is used to create the mode.
+#HOME_MODE	0700
+
 #
 # Password aging controls:
 #
diff --git a/lib/getdef.c b/lib/getdef.c
index bbb273f4..00f6abfe 100644
--- a/lib/getdef.c
+++ b/lib/getdef.c
@@ -93,6 +93,7 @@ static struct itemdef def_table[] = {
 	{"FAKE_SHELL", NULL},
 	{"GID_MAX", NULL},
 	{"GID_MIN", NULL},
+	{"HOME_MODE", NULL},
 	{"HUSHLOGIN_FILE", NULL},
 	{"KILLCHAR", NULL},
 	{"LASTLOG_UID_MAX", NULL},
diff --git a/man/login.defs.5.xml b/man/login.defs.5.xml
index ebf60ba3..9e95da20 100644
--- a/man/login.defs.5.xml
+++ b/man/login.defs.5.xml
@@ -50,6 +50,7 @@
 <!ENTITY FAKE_SHELL            SYSTEM "login.defs.d/FAKE_SHELL.xml">
 <!ENTITY FTMP_FILE             SYSTEM "login.defs.d/FTMP_FILE.xml">
 <!ENTITY GID_MAX               SYSTEM "login.defs.d/GID_MAX.xml">
+<!ENTITY HOME_MODE             SYSTEM "login.defs.d/HOME_MODE.xml">
 <!ENTITY HUSHLOGIN_FILE        SYSTEM "login.defs.d/HUSHLOGIN_FILE.xml">
 <!ENTITY ISSUE_FILE            SYSTEM "login.defs.d/ISSUE_FILE.xml">
 <!ENTITY KILLCHAR              SYSTEM "login.defs.d/KILLCHAR.xml">
@@ -185,6 +186,7 @@
       &FAKE_SHELL;
       &FTMP_FILE;
       &GID_MAX; <!-- documents also GID_MIN -->
+      &HOME_MODE;
       &HUSHLOGIN_FILE;
       &ISSUE_FILE;
       &KILLCHAR;
@@ -401,6 +403,7 @@
 	    ENCRYPT_METHOD
 	    GID_MAX GID_MIN
 	    MAX_MEMBERS_PER_GROUP MD5_CRYPT_ENAB
+	    HOME_MODE
 	    PASS_MAX_DAYS PASS_MIN_DAYS PASS_WARN_AGE
 	    <phrase condition="sha_crypt">SHA_CRYPT_MAX_ROUNDS
 	    SHA_CRYPT_MIN_ROUNDS</phrase>
@@ -481,6 +484,7 @@
 	  <para>
 	    CREATE_HOME
 	    GID_MAX GID_MIN
+	    HOME_MODE
 	    LASTLOG_UID_MAX
 	    MAIL_DIR MAX_MEMBERS_PER_GROUP
 	    PASS_MAX_DAYS PASS_MIN_DAYS PASS_WARN_AGE
diff --git a/man/login.defs.d/UMASK.xml b/man/login.defs.d/UMASK.xml
index d7b71a5e..0f061dbb 100644
--- a/man/login.defs.d/UMASK.xml
+++ b/man/login.defs.d/UMASK.xml
@@ -37,7 +37,8 @@
     </para>
     <para>
       <command>useradd</command> and <command>newusers</command> use this
-      mask to set the mode of the home directory they create
+      mask to set the mode of the home directory they create if
+      <option>HOME_MODE</option> is not set.
     </para>
     <para condition="no_pam">
       It is also used by <command>login</command> to define users' initial
diff --git a/src/newusers.c b/src/newusers.c
index 99c69f78..e9fe0e27 100644
--- a/src/newusers.c
+++ b/src/newusers.c
@@ -1216,9 +1216,9 @@ int main (int argc, char **argv)
 		if (   ('\0' != fields[5][0])
 		    && (access (newpw.pw_dir, F_OK) != 0)) {
 /* FIXME: should check for directory */
-			mode_t msk = 0777 & ~getdef_num ("UMASK",
-			                                 GETDEF_DEFAULT_UMASK);
-			if (mkdir (newpw.pw_dir, msk) != 0) {
+			mode_t mode = getdef_num ("HOME_MODE",
+			                          0777 & ~getdef_num ("UMASK", GETDEF_DEFAULT_UMASK));
+			if (mkdir (newpw.pw_dir, mode) != 0) {
 				fprintf (stderr,
 				         _("%s: line %d: mkdir %s failed: %s\n"),
 				         Prog, line, newpw.pw_dir,
diff --git a/src/useradd.c b/src/useradd.c
index 4af0f7c6..8b453e3c 100644
--- a/src/useradd.c
+++ b/src/useradd.c
@@ -2152,8 +2152,9 @@ static void create_home (void)
 		}
 
 		(void) chown (prefix_user_home, user_id, user_gid);
-		chmod (prefix_user_home,
-		       0777 & ~getdef_num ("UMASK", GETDEF_DEFAULT_UMASK));
+		mode_t mode = getdef_num ("HOME_MODE",
+		                          0777 & ~getdef_num ("UMASK", GETDEF_DEFAULT_UMASK));
+		chmod (prefix_user_home, mode);
 		home_added = true;
 #ifdef WITH_AUDIT
 		audit_logger (AUDIT_ADD_USER, Prog,