Category: Announcements & Statements

Press Release: USMI Submits FHFA Strategic Plan Comment Letter

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For Immediate Release

September 15, 2014

Media Contacts

Robert Schwartz 202-207-3665 (rschwartz@prismpublicaffairs.com)

USMI Submits FHFA Strategic Plan Comment Letter

Highlights How MI Can Help Advance Housing Finance Goals

USMI today submitted its response to the Federal Housing Finance Agency (FHFA) request for input regarding its strategic plan for fiscal years 2015 through 2019. USMI believes that FHFA’s Plan should further take into account mortgage insurance’s (“MI”) role as a reliable source of credit enhancement that can help advance and support the strategic goals of the Plan to ensure liquidity, stability, and access in housing, benefitting taxpayers, borrowers, and lenders.

FHFA regulates the government sponsored housing finance enterprises, Fannie Mae and Freddie Mac (GSEs). The FHFA Plan identifies three strategic goals for the GSEs: (1) ensuring safe and sound regulated entities; (2) ensuring liquidity, stability, and access in housing finance; and (3) managing the GSEs’ ongoing conservatorships.

USMI highlighted a number of specific ways that MI can help advance and support FHFA’s strategic goals, including:

  • Because of the many risk-reducing benefits of MI to protect taxpayers against losses, FHFA should expand and deepen MI’s use on a wider range of GSE loans to help meet the FHFA goal of Ensuring Safe and Sound Regulated Entities.
  • FHFA should fully recognize MI when calculating GSE guarantee fees (g-fees) to avoid double charging consumers and to help meet the FHFA goal of Ensuring Liquidity, Stability, and Access in Housing Finance.
  • In further support of this goal, the GSEs should restore widespread access to a prudently underwritten 97 percent LTV fixed-rate mortgage to further promote responsible access to credit for creditworthy borrowers
The full USMI comment letter is available here.

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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

 

Comment Letter: To FHFA on G-Fees

Posted on by dcadmin

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For Immediate Release

August 14, 2014

Media Contacts

Robert Schwartz 202-207-3665 (rschwartz@prismpublicaffairs.com)
Michael Timberlake 202-207-3637 (mtimberlake@prismpublicaffairs.com)

Full Recognition of MI Benefits Needed to Avoid Double Charging Consumers

USMI today submitted its response to the Federal Housing Finance Agency (FHFA) request for input (RFI) regarding the guarantee fees (g-fees) that Freddie Mac and Fannie Mae charge to lenders.  The RFI follows FHFA’s suspension in January 2014 of proposed increases to g-fees.  USMI comments focused on the following key issues:

  • The g-fee framework should fully take into account MI’s risk-reducing benefits in order to minimize costs to borrowers.  While the framework for calculating g-fees in the RFI is intended to price actual credit risk, USMI believes it fails to fully take into account the risk-reducing benefits of private mortgage insurance (“MI”).  As a result, consumers are charged twice for the same credit risk mitigation.  This disproportionately disadvantages low- and moderate-income and first time homebuyers.  MI is a well accepted and well regarded form of credit enhancement that has made homeownership possible for millions of people who otherwise would not have qualified for mortgage loans.  Full recognition of MI should reduce the cost of mortgages with MI, and create stronger incentives for credit risk to be served by private capital in a competitive market.
  • Increased transparency of the models used to compute g-fees is needed by market participants.  USMI strongly believes that there should be significantly greater transparency with respect to the models (the analytical framework, its assumptions, and its inputs) that are used for pricing and to compute g-fees because these models have an extraordinary impact on the U.S. housing market.  Disclosing the specific parameters of the models used and soliciting public input regarding the parameters would be a helpful first step.
  • G-fees should not be increased to attempt to “crowd in” private capital.  Private label securities historically have been an unreliable source of liquidity in times of economic stress.  In addition, increasing g-fees in this manner would result in increased costs to borrowers and potentially other unintended consequences.  In the absence of a mandate to use g-fees to attempt to crowd in private capital, there is no justification for such increased costs or other unintended consequences.  As such, FHFA should formally withdraw the proposed g-fee increases announced on December 9, 2013.

The full USMI comment letter is available here.

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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: Statement on Mortgage Insurance Eligibility Requirements (PMIERs)

Posted on by dcadmin

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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.

Download as PDF

Press Release: USMI Welcomes New GSE Master Policies

Posted on by dcadmin

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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.

Download as PDF

Press Release: USMI Applauds Bipartisan Vote on Johnson-Crapo

Posted on by dcadmin

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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.

Download as PDF

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 Johnson-Crapo Housing Reform Bill

Posted on by dcadmin

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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

Posted on by dcadmin

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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.