News & Resources

On July 13, the House Committee on Ways and Means held a hearing titled, “Nowhere to Live: Profits, Disinvestment, and the American Housing Crisis.” USMI submitted a statement for the record, writing “that there are tax policies that can be improved in order to help American family achieve the American Dream of homeownership. More specifically, we strongly support H.R. 6109, the Middle Class Mortgage Insurance Premium Act of 2021, a bipartisan bill introduced by Representatives Ron Kind [D-WI] and Vern Buchanan [R-FL].” The legislation, introduced at the end of 2021, would make permanent the ability of homeowners to deduct MI premiums from federal income taxes and make the deduction available to more middle-class families. Click here to read USMI’s statement on the bill’s introduction.

On July 20, the U.S. Senate Committee on Finance held a hearing titled, “The Role of Tax Incentives in Affordable Housing.” USMI submitted a similar statement for the record and wrote that “we strongly support S. 3590, the Middle Class Mortgage Insurance Premium Act of 2022, a bipartisan bill introduced by Senators Maggie Hassan [D-NH] and Roy Blunt [R-MO].” In March, USMI sent a letter to Senate Finance Committee members urging them to co-sponsor the legislation.

During the hearing, Senator Hassan discussed her bill and said, “I’ve introduced bipartisan legislation with Senator Blunt […] to provide tax cuts to middle class families who use mortgage insurance.” Hearing witness Buzz Roberts, President and CEO of the National Association of Affordable Housing Lenders, added that “[p]rivate mortgage insurance is very important so that homebuyers who don’t have 20% down payment funds can get [into homeownership] and we often see them come in at 5%, even 3%. That’s much more attainable for first-time buyers and cutting the cost of that mortgage insurance is very important.”

Earlier this month, Representative Hill (R-AR), the Ranking Member of the Committee on Financial Service’s Subcommittee on Housing, Community Development, and Insurance, and 9 other Republicans sent a letter urging FHFA Director Sandra Thompson to increase oversight of Fannie Mae and Freddie Mac (the government-sponsored enterprises or GSEs) to ensure they “do not overstep their legal bounds.” Congressman Hill shared a press release highlighting that Fannie Mae and Freddie Mac “have a history of venturing into new activities and product offerings that go well beyond their congressionally approved roles in the secondary market.”

Politico’s “Morning Money” newsletter reported that the 10 House Republicans specifically urged Director Thompson “to finalize a rule that would set stricter parameters around the prior approval process for Fannie Mae and Freddie Mac to launch new products.” Politico quoted the letter’s discussion of pilot programs, which House Republicans said “should not be operating as back doors for the enterprises to expand into areas already being served by the private sector or to push a housing policy agenda that introduces unacceptable risk to taxpayers.”

USMI has long supported efforts to establish a transparent and appropriate process for considering, approving, and assessing new GSE products, activities, and pilots. In January 2021, USMI submitted comments on the Prior Approval for Enterprise Products proposed rule to share perspectives on an approval framework that supports access to credit, prudent risk management, and a robust role for private capital in the housing finance system.

On June 8, the GSEs released their “Equitable Housing Finance Plans for 2022-2024,” which outline proposed actions over the next three years to advance equity in housing finance. In its statement, USMI commended the “commitment considered in the GSEs’ Equitable Housing Finance Plans toward sustainable approaches that will meaningfully address racial and ethnic disparities in the housing finance system.” USMI also wrote that it “welcomes the FHFA’s creation of the pilot transparency framework and supports increased oversight and accountability of pilots launched in furtherance of the GSEs’ Equitable Housing Finance Plans.”

USMI’s new chairman Adolfo Marzol shared his thoughts on his new role and how the private MI industry has supported the housing finance system for 65 years. He writes that as the U.S. housing market experiences record high home price appreciation, largely driven by severely limited affordable housing supply, homebuyers – especially first-time, low- to moderate-income, and minority borrowers – face significant challenges in securing a home. This reality leaves many potential homeowners locked out of the market. In light of a red-hot housing market and rising mortgage interest rates, it is critical that affordable, sustainable low down payment mortgages remain available to meet borrowers’ needs. He notes that the “private [MI] industry remains rightfully focused on promoting affordable and sustainable homeownership opportunities, especially for minorities and traditionally underserved communities. This includes playing an important role in addressing the racial homeownership gap and collaborating with FHFA, Fannie Mae and Freddie Mac […] to implement their Equitable Housing Finance Plans.”

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The article highlights USMI’s state-by-state report and writes, “the MI industry helped more than 37 million low down payment borrowers over its 65-year history to secure mortgage financing, including nearly two million alone in 2021.”