DECREASING HOUSING COSTS FOR THE AMERICAN PEOPLE

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered:

Section 1.  Purpose.  The American Dream of homeownership is a vital pillar of our great country.  It is the policy of my Administration to reduce regulatory barriers to mortgage origination and costs impeding homeownership; embrace innovative risk and value assessment technologies that incorporate Super Intelligence to drive down mortgage and homeownership costs; and promote competition and innovation throughout the housing and mortgage market.

Sec. 2.  Proactive Cancellation of Excessive Mortgage Insurance.  (a)  The Director of the Federal Housing Finance Agency (Director) shall, if he determines that it is in the best interests of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation (Enterprises) or the Federal Housing Finance Agency (FHFA), and the American public, direct the Enterprises to establish a pilot program, applicable only to mortgages made after the establishment of the pilot program, that periodically reviews single-family mortgage loans they own, guarantee, or securitize, using automated valuation models and other available data to assess current market value, and to identify borrowers who appear to satisfy equity and other requirements for cancellation of mortgage insurance.

(b)  The Director shall direct the Enterprises to establish procedures for the pilot program, including financial safety and soundness standards and payment-history requirements, under which mortgage insurance is canceled proactively when an Enterprise determines that:

(i)    the borrower satisfies applicable equity requirements based on the property’s current market value, as determined through an automated valuation model or other means approved by the Director;

(ii)   cancellation is consistent with financial safety and soundness and with the Enterprise’s contractual obligations; and