USMI Policy Priorities
USMI 2016 PUBLIC POLICY PRIORITIES
Enabling Access and Protecting Taxpayers
Owning a home is the largest single investment most Americans will make. A strong and vibrant private Mortgage Insurance (MI) industry already plays an important role in facilitating homeownership for millions of Americans, and MI is prepared to do more. But in order to safeguard the future of homeownership, the housing finance system must be reformed. U.S. Mortgage Insurers (USMI) offers real solutions that ensure broader access to sustainable homeownership while reducing taxpayer risk. USMI is ready to help build the future of housing finance.
Enabling Access to Homeownership & Affordable Mortgage Credit with MI.
Mortgage insurance is the first level of credit protection against the risk of loss on a mortgage in the event a borrower is not able to repay the loan and there is not sufficient equity in the home to cover the amount owed. MI has helped millions become homeowners by enhancing their ability to obtain a mortgage in an affordable way. [LINK: How MI Works Infographic]
- MI provides loan level protection against first losses on individual low down payment mortgage loans – and in doing so, promotes broad access to sustainable homeownership for credit worthy borrowers while enhancing stability and liquidity in the housing finance system.
Lenders require mortgage borrowers to pay a substantial down payment – typically 20 percent of the home value. This requirement can be a significant barrier for first-time and low to moderate income homebuyers, “trade-up” homebuyers or those relocating to a higher cost area. MI helps borrowers with a lower down payment gain access to mortgage financing.
- Nearly half of loans originated with MI in the last year were to first-time homebuyers. About 40 percent were borrowers with incomes below $75,000.
USMI supports several policy actions to expand broad access to affordable homeownership through the use of MI: