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.
Month: March 2014
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.
Letter: To FHFA regarding GSE Loan Limits
March 20, 2014
Federal Housing Finance Agency
Office of Policy Analysis and Research
Constitution Center
400 Seventh Street, SW., Ninth Floor
Washington, DC 20024
Attn: No. 2013-N-18
Submitted via email at loanpurchaselimitinput@fhfa.gov
Re: Fannie Mae and Freddie Mac Loan Purchase Limits: Request for Public Input on Implementation Issues (2013-N-18)
Ladies and Gentlemen:
The undersigned organizations appreciate the opportunity to comment on the Federal Housing Finance Agency (FHFA) proposal to reduce the loan purchase limits for Fannie Mae and Freddie Mac (“the Enterprises”).
The nation’s housing markets are on a slow and cautious recovery. The credit box for home lending is exceedingly tight with the average FICO score for a loan sold to the Enterprises at 753 and the average loan-to-value ratio at 70 percent. As Congress considers comprehensive housing finance system reform, we strongly support maintaining the Enterprises’ current conforming and high-cost loan purchase limits at the levels determined by the Housing and Economic Recovery Act (HERA) of 2008 or $417,000 and $625,500 respectively. For areas with loan purchase limits between $417,000 and $625,500, we also believe that you should maintain the current formula for tying the maximum limit to median home prices in those areas.
Congress is making incremental progress on legislation to reform the housing finance system. Plans under consideration in both chambers of Congress directly address loan limits. Setting loan limits is a significant component of housing policy and, as such, is best left to Congress’ discretion, especially while many of the nation’s housing markets remain fragile. In addition, we note that while this proposal is in part premised on shrinking the government’s footprint in the mortgage market, the reduction of the Enterprises’ loan purchase limits could simply shift borrowers to other government-insured programs.
Thank you in advance for your consideration of this important issue. We strongly support FHFA’s efforts to stabilize and strengthen the mortgage market, but we believe that the proposed reductions will have the opposite effect. Should you have questions or wish to discuss any aspect of these comments further, please contact any or all of our organizations.
Sincerely,
Asian Real Estate Association of America (AREAA)
Community Mortgage Lenders of America
Independent Community Bankers of America
Leading Builders of America
Mortgage Bankers Association
National Association of Hispanic Real Estate Professionals (NAHREP)
National Association of Home Builders
National Association of REALTORS®
National Community Reinvestment Coalition
U.S. Mortgage Insurers
Press Release: USMI Applauds Johnson-Crapo Housing Reform Bill
For Immediate Release
March 18, 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)
“USMI applauds Senate Banking Committee Chairman Johnson and Ranking Member Crapo for reaching a bipartisan agreement on housing finance reform legislation, drawing largely from the bipartisan Corker/Warner bill. We are pleased that the bill recognizes the important role of private mortgage insurance in ensuring access to housing finance for borrowers while protecting taxpayers and serving lenders of all sizes. We look forward to working constructively with Congress and other policymakers to build a well-functioning housing finance system backed by private capital.”
###
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: USMI Launches March 10
For Immediate Release
March 10, 2014
Media Contacts
Robert Schwartz 202-207-3665 (rschwartz@prismpublicaffairs.com)
Michael Timberlake 202-207-3637 (mtimberlake@prismpublicaffairs.com)
U.S. Mortgage Insurers Launch New Trade Association
Washington, D.C. – Six of the leading active U.S. mortgage insurance companies announced today the launch of a new trade association, U.S. Mortgage Insurers (USMI).
Arch MI, Essent, Genworth, MGIC, National MI and Radian are the founding members of USMI. The new organization replaces Mortgage Insurance Companies of America (MICA), which wound up operations in early 2014.
Rohit Gupta, President and CEO of U.S. Mortgage Insurance at Genworth, serves as co-chair of USMI and believes USMI will serve an important role in Washington. “USMI will put a renewed focus on the benefits of mortgage insurance (MI) to help ensure access to housing finance for borrowers while protecting taxpayers,” said Gupta. “As policymakers focus on the need to create a strong, stable housing finance system, USMI companies are strongly positioned to serve the housing finance market and are actively engaged in efforts to ensure that MI remains a reliable foundation for the future housing finance system.”
The MI industry has attracted new capital and new entrants. New MI master policies provide strong assurances about the proper handling and payment of claims, and bring greater clarity to contractual protections for lenders and investors with regard to “representations and warranties.” And meaningful regulatory reforms are underway at both the state and national level that will help ensure that the industry maintains a strong financial position and reliably meets its obligations.
Adolfo Marzol, Executive Vice President of Essent, also serves as co-chair of USMI and believes USMI can help shape the path forward. “The MI industry is unique in providing lenders, large and small, with a competitive, affordable and readily accessible way to reduce credit risk with private capital. MI provides policy makers a tool already used by lenders of all sizes with which to build a new housing finance system where private capital stands in front of taxpayer risk,” Marzol said. “The expanded use of MI can be done gradually, providing a sensible transition forward that does not place at risk the proper functioning of a large and complex U.S. housing finance system. MI is ready to do more.”
USMI is led by a board of directors from the six member companies:
- Teresa Bryce Bazemore – President, Radian
- David Gansberg – President and CEO, Arch MI
- Rohit Gupta – President and CEO, U.S. Mortgage Insurance at Genworth
- Adolfo Marzol – Executive Vice President, Essent
- Patrick Mathis – Executive Vice President, Chief Risk Officer, National MI
- Patrick Sinks – President and Chief Operating Officer, MGIC
Today, USMI also unveiled a website with information about the benefits of MI for homeowners, taxpayers and lenders, including data, info-graphics and policy proposals to help shape the future of housing finance. For more information, visit www.usmi.org.
Media Contacts:
Robert Schwartz 202-207-3665
rschwartz@prismpublicaffairs.com
Michael Timberlake 202-207-3637
mtimberlake@prismpublicaffairs.com
###
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.
