Federal Housing Finance Agency's Bill Pulte is seeking to reduce a common homeownership expense by aligning Fannie Mae's policies with Freddie Mac's rules on private mortgage insurance (PMI), coverage typically required for conventional borrowers with less than 20% down. About 800,000 borrowers used PMI to buy homes last year. Under the planned change, loan servicers could proactively contact homeowners whose rising property values or mortgage payments may qualify them to cancel PMI. Freddie Mac already permits such calls, while Fannie Mae previously did not. PMI premiums vary by credit score and down payment, with Freddie Mac estimating costs of $30 to $70 per month for every $100,000 borrowed. Existing rules allow borrowers to request cancellation at 20% equity, while lenders must terminate coverage at 22% equity. Mortgage insurance stocks fell after Pulte's announcement, with MGIC Investment, Enact Holdings, Essent Group and Radian Group all posting declines Tuesday afternoon.