USMI Statement for the Record on “Diversifying Risk: The Benefits of Reinsurance and Credit Risk Transfers”
On April 22nd, USMI submitted a statement for the record for a hearing of the House Committee on Financial Services Subcommittee on Housing and Insurance entitled “Diversifying Risk: The Benefits of Reinsurance and Credit Risk Transfers”. In the statement, USMI described how private mortgage insurance (MI) is the original form of credit risk transfer (CRT) and, for nearly 70 years, has provided robust first-loss credit risk protection on single-family mortgages that remains in effect regardless of the execution and investor, as well as through all market cycles. It further described how the private MI industry has diversified its capital base with access to traditional reinsurance, forward reinsurance contracts, and capital markets-based transactions that reduce volatility and disperse exposures to mortgage credit risk. USMI continues to engage federal policymakers on prudent housing finance policies that enable access to homeownership opportunities, particularly for creditworthy borrowers without large cash down payments. Read the statement for the record here.
