WASHINGTON — USMI issued the following statement on the Federal Housing Finance Agency’s (FHFA) announcements to further adjust the government-sponsored enterprises’ (GSEs or Enterprises), Fannie Mae and Freddie Mac, upfront fees for certain loan purposes and risk attributes:
“Overall, FHFA’s review of upfront pricing in the conventional mortgage market will have a positive impact and result in savings and cost reductions for many low down payment borrowers served by private MI. USMI applauds the FHFA and Director Thompson for taking a measured and prudent approach to identifying areas where upfront costs could be adjusted, and for many reduced, while maintaining a commitment to strong risk management.
“The private MI industry has a 65-year history of facilitating affordable access to low down payment lending. USMI has long advocated for recognition of the strength of the first loss benefit that private MI provides and appreciates FHFA’s thoughtful approach to strategically reduce the redundant costs to borrowers of loan level price adjustments. USMI looks forward to continuing to work with FHFA, the GSEs, and other industry stakeholders in support of clear, consistent, and coordinated housing finance policies that best serve all home-ready consumers and protect taxpayers from undue credit risk.”
USMI has previously called for FHFA to reexamine and reform g-fees, particularly loan-level price adjustments (LLPAs), in numerous letters and columns. In October, USMI commended FHFA on its ongoing review of GSE pricing.
U.S. Mortgage Insurers (USMI) is dedicated to a housing finance system backed by private capital that enables access to affordable and sustainable housing finance for borrowers while protecting taxpayers. Mortgage insurance offers an effective way to make mortgage credit available to more people. USMI is ready to help build the future of homeownership. Learn more at www.usmi.org.
WASHINGTON — U.S. Mortgage Insurers (USMI), the association representing the nation’s leading private mortgage insurance (MI) companies in an industry with $1.5 trillion of insurance-in-force, today announced that Seth Appleton, the President of the Mortgage Industry Standards Maintenance Organization (MISMO), will serve as the association’s new President starting in January 2023. Appleton currently serves as co-chair of the Bipartisan Policy Center’s Housing Council and previously served as Assistant Secretary for Policy Development and Research at the U.S. Department of Housing and Urban Development (HUD), a position for which he was confirmed unanimously by the U.S. Senate.
Appleton is a seasoned legislative, regulatory, and public policy professional with a track record of working across the aisle to deliver results, as proven by his role in helping to pass reauthorization legislation that reformed housing policies for the first time in decades and was unanimously passed by a Republican-led Congress and supported and signed into law by President Obama.
“With a deep knowledge of the mortgage industry and a proven record of bipartisan advocacy, Seth is the right leader to promote the mission of the private mortgage insurance industry in helping first-time homebuyers achieve the American dream of homeownership,” said Adolfo Marzol, USMI’s Board Chairman. “Seth’s diverse experience in senior roles at HUD, Ginnie Mae, MISMO, and on Capitol Hill stand out. He knows how to collaborate to get things done in Washington, and we are excited to bring his proven leadership to USMI,” continued Marzol.
“I am honored to join the private mortgage insurance industry at a time when sustainable low down payment lending – backed by private capital – is so important to borrowers and the entire housing finance system,” said Appleton. “Over 37 million low down payment borrowers have gained access to affordable and sustainable mortgage financing by utilizing private mortgage insurance. This track record of serving borrower needs while reducing risk to the housing finance system is the foundation for broad bipartisan support for the role of private MI. As USMI President, I look forward to communicating the value of private MI in unlocking the opportunity to buy a home for millions of additional families in the years to come, while at the same time providing safety and soundness for the housing finance system.”
U.S. Mortgage Insurers (USMI) is dedicated to a housing finance system backed by private capital that enables access to housing finance for borrowers while protecting taxpayers. Mortgage insurance offers an effective way to make mortgage credit available to more people. USMI is ready to help build the future of homeownership. Learn more at www.usmi.org.