Author: dcadmin

Press Release: Statement on Mortgage Insurance Eligibility Requirements (PMIERs)

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For Immediate Release

July 10, 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)

“Today, FHFA published new, draft Private Mortgage Insurer Eligibility Requirements (“PMIERs”) that establish the standards for MIs to be approved to insure loans sold to or guaranteed by Fannie Mae and Freddie Mac (the “GSEs”). USMI member companies support this important effort to set standards that will help provide confidence to market participants and policy makers regarding the long-term value of MI.”

“Once finalized, the new PMIERs will complement the significant progress the industry has made since the housing downturn. The MI industry has recapitalized, attracted new entrants and finalized new master policies that will go into effect October 1 of this year and provide greater clarity and transparency on the mortgage insurance process – from origination through servicing and claim settlement. Mortgage insurers have played a very important role during the downtown, covering approximately $44 billion in claims since the GSEs entered conservatorship, resulting in a substantial savings to taxpayers. The draft PMIERs are subject to a 60 day notice and comment period. USMI member companies expect to provide comments to FHFA during the public input period and to work closely with FHFA and the GSEs to implement the PMIERs.”

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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.

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Press Release: USMI Welcomes New GSE Master Policies

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For Immediate Release

June 25, 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 is very pleased that Fannie Mae and Freddie Mac have announced an effective implementation date of October 1, 2014 for new mortgage insurance master policies. New master policies provide assurances about the consistent handling and payment of claims and bring greater transparency to contractual protections for lenders and investors with regard to “representations and warranties.” This important step forward is a component of meaningful reforms that will help ensure that the industry maintains a strong financial position and meets its obligations.”

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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.

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Comment Letter: Housing Trade Groups File National Mortgage Database

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The following letter was delivered to the Federal Housing Finance Agency:

 

May 16, 2014

Alfred M. Pollard, General Counsel
Attention: Comments/2014-N-03
Federal Housing Finance Agency
400 Seventh Street S.W.
Washington, D.C. 20024

Via Email at RegComments@fhfa.gov

RE: 2014-N-03
Dear Mr. Pollard:

The undersigned associations appreciate the opportunity to comment on the Notice of revision to an existing system of records (2014-N-03) regarding the National Mortgage Database (the “NMDB”) under development by the Federal Housing Finance Agency (FHFA) and the Consumer Financial Protection Bureau (CFPB). The NMDB has two stated purposes: to facilitate mandatory reporting under the Housing and Economic Recovery Act of 2008 and to conduct “research, performance modeling and examination monitoring.” In addition to borrower records based on credit repository data, the database will include results of ongoing borrower surveying. Records will be matched with records within other datasets and then personal identifiers will be “deidentified” before the NMDB is used for research. This matching function makes the NMDB unique and uniquely valuable as a research tool.

In July 2013, representatives of FHFA, the CFPB and Freddie Mac presented at the International Conference of Collateral Risk: Moderating Housing Cycles and their Systemic Impact. The presenters explained that the NMDB is being set up as “a public good” that is needed because existing databases (HMDA, LPS McDash , CoreLogic and NY Fed Equifax) are not fully representative, and in the case of HMDA, also do not report data until 9-21 months after a mortgage is originated. For some, the cost of obtaining information from the existing databases is prohibitive.

By closing these existing data gaps, the NMDB will serve as a valuable research tool that should be made broadly available for housing finance research and analysis. However, it is currently contemplated that access to the NMDB will be allowed only for certain employees of federal government agencies, reserve banks and Fannie Mae and Freddie Mac (“the Enterprises”). The undersigned believe that it is inappropriate and unnecessary to restrict access to the NMDB in this way. The NMDB will facilitate important undertakings within the private sector, including market analysis, product development and evaluation of credit risk standards. It will also enable third parties to assess work done by federal agencies or the Enterprises based on the NMDB, and will promote robust policy discussions and help to drive sound outcomes. Consumer identifying information will be removed from the NMDB, thus minimizing any potential threat to consumer privacy. However, if FHFA or the CFPB has lingering concerns about privacy issues, a simple user agreement to refrain from reverse engineering records would provide added protections.

The undersigned appreciate your consideration of this important issue. Feel free to contact any of us if we may be of further assistance.

 

Very truly yours,

Mortgage Bankers Association
Attn: Stephen A. O’Connor (soconnor@mba.org)

National Association of Home Builders
Attn: David L. Ledford (dledford@nahb.org)

U.S. Mortgage Insurers
Attn: Rohit Gupta (rohit.gupta@genworth.com)
Adolfo F. Marzol (adolfo.marzol@essent.us) .

 

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Press Release: USMI Applauds Bipartisan Vote on Johnson-Crapo

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For Immediate Release

May 15, 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)

“U.S. Mortgage Insurers (USMI) applauds the bipartisan vote by the Senate Banking Committee to approve the Johnson-Crapo housing finance legislation.

“The Johnson-Crapo bill recognizes the valuable role of private mortgage insurance to provide creditworthy borrowers with access to affordable and sustainable mortgages, protect taxpayers, and serve lenders of all sizes.

“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 members look forward to working with policymakers in support of comprehensive housing finance reform legislation that relies on a stable platform of private capital and sound lending practices to build the future of homeownership.”

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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.

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Letter: USMI Urges Support of Johnson-Crapo

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USMI delivered the following letter to members of the Senate Banking Committee:

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April 28, 2014

 

The Honorable Tim Johnson
Chairman
Senate Banking Committee
136 Hart Senate Office Building
Washington, DC 20510

The Honorable Mike Crapo
Ranking Member
Senate Banking Committee
239 Dirksen Senate Office Building
Washington, DC 20510

 

Dear Chairman Johnson and Ranking Member Crapo:

With the Senate Banking Committee set to consider the Johnson-Crapo comprehensive housing finance legislation, the members of U.S. Mortgage Insurers – USMI – applaud the Committee leadership for their bipartisan work on this important bill, and urge the Members of the Committee to support it.

The Johnson-Crapo bill reflects several compelling goals.  There is a growing consensus that the current housing finance system, dominated by government support, is unsustainable.  There is also widespread recognition that private capital, and not the taxpayers, should bear more of the risks of losses from another housing downturn.  Reform should be accomplished in a manner that keeps mortgage financing affordable and accessible to creditworthy borrowers across the economic spectrum.

We are pleased that the bill recognizes the important role of private mortgage insurance in ensuring that creditworthy borrowers continue to have access to affordable and sustainable mortgages, protecting taxpayers, and serving lenders of all sizes.

We look forward to working constructively with the Committee and other policymakers as the process moves forward to help build a well-functioning housing finance system backed by private capital.

 

Sincerely,

Rohit Gupta, President and CEO of Genworth Mortgage Insurance (Co-Chair)
Adolfo Marzol, Executive Vice President of Essent (Co-Chair)

cc: Members of Senate Banking Committee

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Press Release: USMI Applauds Bipartisan Vote Extending Homeowner Tax Relief

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For Immediate Release

April 3, 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 the members of the Senate Finance Committee for voting on a bipartisan basis today to extend vital homeowner tax relief. We are particularly pleased that the bill continues to recognize the tax-deductible treatment of mortgage insurance premiums for low and moderate income borrowers.  We look forward to working constructively with Congress towards enactment of this important tax relief for homeowners.”

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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.

Download as PDF

Letter: To FHFA regarding GSE Loan Limits

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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

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Press Release: USMI Applauds Johnson-Crapo Housing Reform Bill

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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.”

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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.

Download as PDF

Press Release: USMI Launches March 10

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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

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 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.