Future of Housing In America: Oversight of FHA: Part II – February 26, 2015
Category: Uncategorized
Testimony: Patrick Sinks Before the United States House Committee on Financial Services
Statement: FHFA 2015 Scorecard Progress Report
USMI STATEMENT ON FHFA 2015 SCORECARD PROGRESS REPORT
Today, the Federal Housing Finance Agency (FHFA) released its 2015 Scorecard Progress Report for activities undertaken at the government housing enterprises, Fannie Mae, and Freddie Mac. USMI welcomes the focus of FHFA on credit risk transfer (CRT) over the last three years, but urges FHFA and the Government Sponsored Enterprises (GSEs) to further advance efforts to reduce taxpayer risk through greater up-front risk sharing with the private sector, including private mortgage insurers (MIs).
“Importantly, the report recognizes the accomplishment of finalizing new private MI master policies that provide greater clarity on payment of claims, and the Private Mortgage Insurance Eligibility Requirements (PMIERs), the new capital and operating standards for MIs. Both of these affirm the reliability of MIs as risk sharing counterparties,” said Lindsey Johnson, President and Executive Director of USMI.
The report also shows that, while progress has been made, the amount of risk sharing still remains relatively small, meaning more can be done to de-risk GSEs with private capital, which would directly reduce pressure on GSE capital and the need for any future taxpayer assistance. Further, the report conveys that the vast majority of transactions occur on the backend. USMI remains committed to working with FHFA and the GSEs on specific steps to increase the amount and levels of credit risk transferred from the GSEs to private capital and to take greater advantage of the benefits of front-end risk sharing with MI.
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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.
Press Release: Statement from U.S. Mortgage Insurers (USMI) on PMIERs and G-Fees
For Immediate Release
September 8, 2014
Media Contacts
Robert Schwartz 202-207-3665 (rschwartz@prismpublicaffairs.com)
Michael Timberlake 202-207-3637 (mtimberlake@prismpublicaffairs.com)
Statement from U.S. Mortgage Insurers (USMI)
“Today, the 60-day comment period closed on revised Private Mortgage Insurer Eligibility Requirements (“PMIERs”) that set standards for approving mortgage insurers (MIs) covering GSE loans. MI is an integral part of the mortgage finance system because it provides first position credit loss protection for higher loan-to-value loans guaranteed by Fannie Mae and Freddie Mac (the “GSEs”). USMI members appreciate the opportunities to engage with FHFA and the GSEs on this important issue.
“USMI member companies have submitted responses to the Request for Input published in the Federal Register. USMI members remain united in support of the need to update the PMIERs. When finalized, those standards will confirm the long-term value of MI for mortgage borrowers, lenders, and taxpayers. Accordingly, USMI will continue to work closely with FHFA and the GSEs to finalize and implement the PMIERs.
“USMI members also will continue to work closely with the National Association of Insurance Commissioners’ Mortgage Guaranty Insurance Working Group as it updates the Mortgage Guaranty Insurance Model Act (“Model Act”) to strengthen state regulatory standards regarding MI. Supporting both updated national standards and state regulation, USMI members are committed to sound prudential regulation that works in a complementary manner to enable a well-functioning market for borrowers, lenders and policyholders.
“In addition, in August, USMI submitted a letter responding to the Request for Input regarding g-fees. G-fees must be set at levels that fully recognize the risk mitigating benefits of MI to avoid double charging consumers. The comment period for that Request also closed today.
“The MI industry has shown significant momentum since the housing downturn. In addition to the revised PMIERs, MI has recapitalized, attracted new entrants, and finalized new master policies that provide greater clarity and transparency on the mortgage insurance process. Mortgage insurers have also covered approximately $43 billion in claims to the GSEs since the GSEs entered conservatorship, resulting in a substantial savings to taxpayers.”
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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.
Video: Politico’s Jon Prior Leads USMI Policy Forum
Panelists included: Kent Colton, Harvard University; Doug Holtz-Eakin, American Action Forum; Rohit Gupta, Genworth Mortgage Insurance; Barry Zigas, Consumer Federation of America; with Politico’s Jon Prior moderating at the Newseum March 10.
Video: Sen. Isakson’s Keynote at USMI Policy Forum
Senator Johnny Isakson (R-Ga.) kicks off USMI policy forum at the Newseum March 10.
Sen. Johnny Isakson and Housing Finance Leaders Address Future of MI at USMI Policy Forum
Sen. Johnny Isakson (R-Ga.) and housing finance leaders Kent Colton, Doug Holtz-Eakin, Rohit Gupta, and Barry Zigas address the future of MI at The Future of Housing Finance: Expanding the Role of Private Capital While Ensuring Access to Homeownership forum at the Newseum on March 10.
