News & Resources

On July 30, USMI released its annual MI in Your State report on mortgage financing supported by private MI at the national and state levels. The report found that both the first-time homebuyer and the 3% down payment shares of the private MI market have increased since 2020. Further, the industry has helped more than 39 million low down payment borrowers over its 67-year history to secure mortgage financing, including nearly 800,000 borrowers in 2023. The report also found that saving for a 20% down payment could take a typical homebuyer 27 years versus 9 years to save 5% down. Texas, Florida, California, Illinois, and Ohio were the top five states for mortgage financing with private MI. Moreover, new data shows that the top five states that saw an increase in first-time homebuyers’ share of the private MI market were Vermont, Delaware, Maine, South Dakota, and Missouri. The top five states that saw an increase in the 3% down payment segment’s share of the private MI market were Missouri, Michigan, Indiana, Iowa, and Ohio. The report received media coverage from National Mortgage News, HousingWire, Inman, MortgageOrb, Cleveland.com, and MBA Newslink. The full report and fact sheets for all 50 states, plus D.C., are available here.

On August 21, USMI issued a statement on updated guidance to the PMIERs Available Asset Standard provided by the GSEs under the oversight of FHFA. USMI stated, “We thank FHFA Director Thompson and her team, and Fannie Mae and Freddie Mac, for their continued commitment toward PMIERs and our industry, and for their constructive engagement. We look forward to continuing to work with FHFA and the GSEs in support of our shared objectives of promoting access and affordability to the conventional mortgage market for borrowers while ensuring safety and soundness for the housing finance system.” National Mortgage News and HousingWire covered the updates.

On June 27, USMI announced that Enact Holdings, Inc. President and CEO Rohit Gupta will serve as the association’s new Chairman of the Board. He succeeds Adolfo Marzol of Essent Group, Ltd. who served as USMI’s Chairman for the past two years. Chairman Gupta commented “[t]he role the private MI industry plays in providing first-time and low- to moderate-income borrowers with access to affordable and sustainable mortgage credit cannot be overstated, particularly in the current high interest rate market. Our industry remains focused on advancing accessible and affordable homeownership for underserved communities, while ensuring the safety and soundness of the housing finance system. I look forward to once again serving as Chair and working with USMI’s Board, staff, and external stakeholders.”

USMI President Seth Appleton added, “Rohit’s dedication to affordable and sustainable homeownership backed by private capital is invaluable to USMI’s efforts moving forward. Rohit’s previous experience as Chairman of the Board makes this a seamless transition and positions the organization for continued success.” USMI’s announcement was covered by Mortgage Professional America, National Mortgage News, and Politico Influence.

On June 11, USMI President Seth Appleton participated in the Bipartisan Policy Center’s 2024 Summit on Housing Supply Solutions, on a panel titled, “What Do the 2024 Elections Mean for Housing?” Appleton spoke on promoting affordable and sustainable homeownership, including bipartisan legislation introduced by Senators Maggie Hassan (D-NH) and Thom Tillis (R-NC), and Representatives Vern Buchanan (R-FL) and Jimmy Panetta (D-CA) allowing eligible low- and moderate-income homeowners to deduct MI premiums from their federal income tax returns. As quoted in an article from Inside Mortgage Finance, during the panel, Appleton said “Housing is a critical issue, and lack of supply is at the center of that.” Panel participants also included:

• Laura Arce, Senior Vice President of Economic Initiatives, UnidosUS
• Sarah Brundage, CEO and President, National Association of Affordable Housing Lenders
• Mark Calabria, Senior Advisor, CATO Institute
• Abha Bhattarai, Economic Correspondent, Washington Post (Moderator)

On May 23, USMI submitted a comment letter in response to the notice of proposed new product issued by FHFA on Freddie Mac’s Single-Family Closed-End Second Mortgages proposed product, pursuant to the Prior Approval for Enterprise Products Final Rule.

On June 21, FHFA conditionally approved Freddie Mac’s proposed product. In response to the decision, USMI President Seth Appleton issued a statement, noting that “USMI appreciates FHFA’s publication of Freddie Mac’s proposed ‘Purchase of Single-Family Closed-End Second Mortgages’ product for public comment consistent with the Prior Approval of Enterprise Products Rule process.  After carefully reviewing the proposal, USMI urged FHFA to disapprove of the proposed product. While today’s announcement includes important limitations to the pilot, further clarifications should be provided including on how loan-to-value (LTV) ratios will be calculated, information about applicable debt-to-income (DTI) limitations, a specific exclusion for ‘piggyback loans,’ and additional details on capital and pricing treatment.

“USMI looks forward to FHFA and Freddie Mac clarifying these issues, as well as the public release of FHFA’s analysis upon the conclusion of the pilot, which will review whether its objectives were met.”

On May 13, USMI joined the American Bankers Association (ABA), Housing Policy Council (HPC), Independent Community Bankers of America (ICBA), and Mortgage Bankers Association (MBA) in sending a letter to FHFA Director Thompson regarding the publication of the VantageScore 4.0 historical dataset. The coalition hoped that providing early, proactive, and constructive feedback to FHFA and the GSEs will allow adequate time to augment the data made available in the 3Q 2024 data release, as well as, in any subsequent data release.

On June 7, USMI joined America’s Credit Unions (ACU), Community Home Lenders of America (CHLA), HPC, and ICBA in sending a letter to FHFA to share observations and recommendations related to the GSEs’ definition and policies regarding “First-Generation Homebuyers.” The coalition believes that refinements are warranted to more appropriately target borrowers and address market participants’ operational concerns. USMI’s participation in the letter was noted in The Hill and National Mortgage News.

On May 31, USMI President Seth Appleton authored an opinion article in the Mortgage Note titled, “Low Down Payment Mortgages Make It Possible To Buy A Home In A High-Rate Environment.” Appleton notes in the op-ed how first-time homebuyers are able to put down as little as 3% to purchase a home and qualify for a conventional mortgage using private MI. He said, “[i]n the current market, where housing prices are holding constant, it’s a helpful option to buy now, lock in housing costs at a sustainable monthly payment, begin building wealth and equity, and if rates drop in the future, lower interest costs by refinancing.”