Letter: Comments to FHFA on GSEs’ Single-Family Mortgage Pricing Framework

August 15, 2023

U.S. Mortgage Insurers (USMI), the association representing the nation’s leading private mortgage insurance (MI) companies, submitted a comment letter in response to the Federal Housing Finance Agency’s (FHFA) Request for Input (RFI) on Fannie Mae and Freddie Mac’s (the government-sponsored enterprises or GSEs) Single-Family Mortgage Pricing Framework (the GSE Pricing Framework). USMI recommends that the FHFA’s oversight of the GSE Pricing Framework should be based on the following principles:
(1) maximize responsible homeownership opportunities for all home-ready borrowers;
(2) account for the risk mitigating and capital benefits of private MI as strong GSE counterparties that stand in the first loss position;
(3) reflect the real expected returns to the GSEs from low down payment mortgages covered by private MI to more accurately price mortgage credit risk and eliminate duplicative fees for first-time, low- to moderate-income (LMI), and high loan-to-value (LTV) homebuyers;
(4) promote a coordinated approach to government housing finance policy;
(5) utilize a transparent approval and implementation process with extensive stakeholder engagement to holistically assess risk management and affordability implications.

Click here to read the letter.