Category: Announcements & Statements

Press Release: USMI Names Christina Brown as Vice President and Senior Counsel

Posted on by Karl Howley

USMI also promotes Brendan Kihn to Vice President of Government Relations 

WASHINGTON — U.S. Mortgage Insurers (USMI), the association representing the nation’s leading private mortgage insurance (MI) companies, today announced that Christina Brown will serve as Vice President and Senior Counsel for the association. Prior to joining USMI, Brown worked in a senior legal role at a mid-size independent mortgage bank and on regulatory and policy matters related to residential mortgage lending and servicing for a large depository institution. Brown previously served as Acting Principal Deputy General Counsel at the U.S. Department of Housing and Urban Development (HUD).

Brown is a dedicated attorney with significant mortgage, real estate, legal, regulatory, and operations experience across law firms, the federal government, and the private sector. At HUD, she served as the primary advisor to the General Counsel and supported the Department’s senior leaders including the Secretary and Deputy Secretary. She also led multiple administrative reform efforts identified in HUD’s Housing Finance Reform Plan and collaborated with the Federal Housing Finance Agency (FHFA) and other government agencies on cross-cutting legal and regulatory issues, including legislative initiatives related to the COVID-19 National Emergency and HUD’s responsibilities under the CARES Act.

“We are thrilled to have Christina join our team and share her deep knowledge of the mortgage industry, the housing finance system, and the regulatory process to support our members as they enable access to affordable homeownership, while strengthening the safety and soundness of the housing finance system,” said Seth Appleton, President of USMI. “Christina’s background and experience in legal and regulatory matters in the federal government and private sectors provide a unique perspective that will allow us to better serve and advocate for the borrowers and taxpayers who benefit from low down payment mortgages backed by private capital.”

“I look forward to working with the private MI industry, which for over 65 years has been committed to ensuring that home-ready borrowers have access to affordable and sustainable mortgage financing while promoting safety and soundness in the housing finance industry,” said Brown. “Given my passion for housing issues and sustainable homeownership, I am honored to join USMI and the private MI industry as it plays an important role in providing low down payment options backed by private capital, which are crucial for so many borrowers who seek to reach the American Dream of homeownership while building generational wealth.”

USMI is also pleased to announce that Brendan Kihn is being promoted to Vice President of Government Relations. Kihn has worked with USMI for 7 years, previously serving as Senior Director of Government Relations. He represents the association in front of lawmakers, regulators, and housing industry stakeholders in Washington, D.C., where he aids in the development of legislative and regulatory strategies to advocate on behalf of the private MI industry on issues focused on increasing sustainable and affordable homeownership, strengthening the housing finance system, and tax policy. “During his tenure at USMI, Brendan has enabled the association to be nimble and effective on advocacy initiatives with policymakers, housing industry stakeholders, and consumer advocate organizations,” said Appleton. “Brendan’s promotion recognizes his critical role at USMI and is a reflection of the important work that he will continue to do to strengthen USMI through advocacy efforts that benefit millions of low down payment borrowers and the housing finance system.”

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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.

Statement: The Introduction of The Middle Class Mortgage Insurance Premium Act of 2023

Posted on by Karl Howley

WASHINGTON—Seth Appleton, President of U.S. Mortgage Insurers (USMI), released the following statement on the introduction of The Middle-Class Mortgage Insurance (MI) Premium Act of 2023 sponsored by Representatives Vern Buchanan (R-FL) and Jimmy Panetta (D-CA):

“We are grateful to Representatives Buchanan and Panetta for their continued leadership on this critical legislation that would make permanent the ability of middle-class homeowners to deduct private and government MI premiums on their individual federal income tax returns, importantly restoring parity with the deductibility of mortgage interest. Since 2007, millions of homeowners have been able to claim the MI tax deduction, allowing them to save more of their hard-earned dollars. The MI tax deduction has long enjoyed bipartisan, industry, and consumer advocate support. We urge swift passage by the House and Senate.

“As affordability remains a persistent barrier to homeownership across the country, particularly for first-time homebuyers, the need for this legislation is even more urgent today than when the deduction was first enacted. Low down payment mortgages, including conventional loans with private MI, have proven critical for millions of low- and moderate-income, first-time, and minority borrowers to sustainably buy a home sooner, secure financial stability, and build intergenerational wealth.”

Borrower-paid MI premiums became tax deductible in 2007, but the deduction expired after tax year 2021. Last November, USMI joined a coalition of housing organizations in sending a letter to the House Ways and Means Committee and Senate Finance Committee urging members to make the MI premium tax deduction permanent and increase its income phaseout. Data through tax year 2020 shows that an average of 3.3 million homeowners have claimed the deduction annually and received an average deduction of $1,427. In aggregate, homeowners claimed more than $61 billion in MI premium deductions between 2007 and 2020.

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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.

Statement: FHFA’s Announcement of Additional Updates to Upfront GSE Pricing

Posted on by Rhina Portillo

WASHINGTON — USMI issued the following statement on the Federal Housing Finance Agency’s (FHFA) announcements to further adjust the government-sponsored enterprises’ (GSEs or Enterprises), Fannie Mae and Freddie Mac, upfront fees for certain loan purposes and risk attributes:

“Overall, FHFA’s review of upfront pricing in the conventional mortgage market will have a positive impact and result in savings and cost reductions for many low down payment borrowers served by private MI. USMI applauds the FHFA and Director Thompson for taking a measured and prudent approach to identifying areas where upfront costs could be adjusted, and for many reduced, while maintaining a commitment to strong risk management.

“The private MI industry has a 65-year history of facilitating affordable access to low down payment lending. USMI has long advocated for recognition of the strength of the first loss benefit that private MI provides and appreciates FHFA’s thoughtful approach to strategically reduce the redundant costs to borrowers of loan level price adjustments. USMI looks forward to continuing to work with FHFA, the GSEs, and other industry stakeholders in support of clear, consistent, and coordinated housing finance policies that best serve all home-ready consumers and protect taxpayers from undue credit risk.”

USMI has previously called for FHFA to reexamine and reform g-fees, particularly loan-level price adjustments (LLPAs), in numerous letters and columns. In October, USMI commended FHFA on its ongoing review of GSE pricing.

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U.S. Mortgage Insurers (USMI) is dedicated to a housing finance system backed by private capital that enables access to affordable and sustainable 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.

Statement: FHFA’s Release of Fannie Mae and Freddie Mac’s “Equitable Housing Finance Plans for 2022-2024”

Posted on by Karl Howley

WASHINGTON — Adolfo Marzol, Chairman of U.S. Mortgage Insurers (USMI), today issued the following statement on the Federal Housing Finance Agency’s (FHFA) public release of Fannie Mae and Freddie Mac’s “Equitable Housing Finance Plans for 2022-2024,” which outline the government-sponsored enterprises’ (GSEs) proposed actions over the next three years to advance equity in housing finance.

“USMI commends the commitment considered in the GSEs’ Equitable Housing Finance Plans toward sustainable approaches that will meaningfully address racial and ethnic disparities in the housing finance system. Our members support efforts to remove barriers to homeownership, increase access and affordability, and promote sustainable homeownership for minority homebuyers. For 65 years, private mortgage insurance has provided access to mortgage financing for millions of borrowers, while also protecting American taxpayers from mortgage credit risk. As an industry focused on serving low down payment homebuyers, we look forward to continued collaboration with FHFA, the GSEs, and other industry stakeholders to advance policies that promote responsible access to equitable and sustainable homeownership while also supporting the GSEs’ safety and soundness.

“As the GSEs develop and implement programs and pilots to promote equitable access to affordable and sustainable housing, it is paramount that they carefully balance access to credit with policies that prudently manage risk to the GSEs. USMI welcomes the FHFA’s creation of the pilot transparency framework and supports increased oversight and accountability of pilots launched in furtherance of the GSEs’ Equitable Housing Finance Plans.”

Since 1957, the private MI industry has exclusively served low down payment borrowers and made sustainable homeownership available for more than 37 million borrowers. On October 25, 2021, USMI submitted a comment letter in response to the FHFA’s Request for Input (RFI) on the “Enterprise Equitable Housing Finance Plans,” detailing actions the GSEs should consider to promote sustainable homeownership and level the playing field for underserved homebuyers.

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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.

Press Release: USMI Names Essent’s Adolfo Marzol as Chairman of the Board

Posted on by Chloe Plefka

WASHINGTON — U.S. Mortgage Insurers (USMI), the association representing the nation’s leading private mortgage insurance (MI) companies, today announced that Adolfo Marzol will serve as the association’s new Chairman of the Board. Marzol is currently an executive at Essent (NYSE: ESNT). He succeeds Derek Brummer, President of Mortgage at Radian Group (NYSE: RDN).

“For 65 years, the private MI industry has helped to provide first-time and low- to moderate-income borrowers with access to affordable and sustainable mortgage credit. The industry has continued to evolve and innovate so that it is better positioned today than ever before to support borrowers and to insulate the government and taxpayers from mortgage credit risk,” said Marzol. “As USMI Chairman, I look forward to working with my industry colleagues and the dedicated team at USMI to ensure the industry continues to play a critical role in the housing finance system and allows borrowers to succeed as sustainable homeowners for the long term.”

Marzol previously served as Principal Deputy Director of the Federal Housing Finance Agency (FHFA). Prior to joining FHFA, Marzol served as Senior Advisor for Housing to Dr. Benjamin S. Carson Jr., the 17th U.S. Secretary for the Department of Housing and Urban Development (HUD). Marzol also brings more than 30 years of private sector experience in mortgage finance, including senior-level positions at Essent, Fannie Mae, and Chase Manhattan Mortgage. Marzol’s diverse industry and policy background includes extensive experience in the areas of mortgage origination and securitization, mortgage servicing, credit risk management, financial management and reporting, policy and governance, and public policy developments related to housing finance.

“Adolfo’s regulatory experience combined with his years of knowledge as a financial and risk management professional in the mortgage finance industry are invaluable assets to our industry association,” said outgoing USMI Chairman Derek Brummer. “Adolfo was instrumental in the creation of USMI and we are honored to welcome him back as our new chairman. I am personally grateful to his dedication and years of service to the housing finance system.”

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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.

Press Release: Texas Ranks #1 in the U.S. for Low Down Payment Mortgage Lending in 2021

Posted on by Chloe Plefka

Over 148,000 in the state turned to private mortgage insurance to achieve homeownership, saving for a 20% down payment could take Texans 13 years.

WASHINGTON — U.S. Mortgage Insurers (USMI), the association representing the nation’s leading private mortgage insurance (MI) companies, today released its annual report on mortgage lending supported by private MI at the national and state levels. The report finds that the industry helped more than 37 million low down payment borrowers over its 65-year history to secure mortgage financing, including nearly 2 million in 2021, according to data from the government sponsored enterprises (GSEs), Fannie Mae and Freddie Mac. Texas led all other states for the fifth consecutive year for borrowers who benefitted the most from private MI. The report also finds it could take Texans 13 years on average to save for a 20% down payment plus closing costs, but 148,366 homeowners in the state avoided the wait by qualifying for a low down payment mortgage backed by private MI, with 50% of purchasers being first-time homebuyers. According to Fannie Mae, private MI ranks among the lowest costs associated with homeownership, with total private MI payments representing 0.5% of lifetime homeownership costs for the average purchase borrower, plus it can be canceled after a period of time.

“Access to low down payment loans was more important than ever this past year as many Texans weighed economic concerns with surging inflation and home prices skyrocketing due to severely low housing supply,” said Lindsey Johnson, President of USMI. “Through it all, the private MI industry was there to support new borrowers and current homeowners. First-time and low- to moderate-income borrowers were particularly well served during 2021, allowing them to access homeownership sooner.”

Private MI facilitates access to sustainable and affordable mortgage finance credit for millions of people who put less than 20% down on a home loan. The USMI report examines the number of borrowers served, the percentage of borrowers who were first-time homebuyers, average loan amounts, and average FICO credit scores. USMI also calculates the number of years to save a 5% versus 20% down payment for each state plus the District of Columbia. For many Texans, the biggest hurdle in buying a home is the 20% down payment they mistakenly believe is required for mortgage approval.

Key findings about Texas from the report include:

  • It could take 13 years for a Texas household earning the state median income of $68,093 to save 20% (plus closing costs) for a $332,400 single-family home, the median sales price in the state.
  • The wait time decreases to five years if the household purchases a home with a 5% down payment insured mortgage—a 38% decrease in wait time at the state level.
  • Of the Texan homeowners who secured a low down payment loan with private MI in 2021, 59% (a 1% increase from 2020) of purchase mortgages went to first-time buyers, with an average loan amount of $300,438.

The number of years to save for a down payment decreased in comparison to USMI’s past reports as the personal saving rate reached record highs during the first six months of 2021, as reported by the Federal Reserve Bank. This was largely due to consumer spending decreasing, government stimulus checks, and an increase in unemployment insurance.  According to a 2020 Congressional Research Service report, the “saving rate usually goes up when there’s a decline in general economic activity, but it can quickly fall back down when there are positive signs of growth.” The U.S. economy experienced this growth as businesses reopened during the second half of 2021, once the COVID-19 pandemic started to recede. As a result, personal saving rates resumed regular levels as consumers began spending more and saving less, while at the same time the economy experienced high inflation, limiting people’s ability to save.

“For 65 years, the private MI industry has been leveling the homebuying playing field, enabling over 37 million people access to affordable, low down payment mortgages, serving as a bridge for homebuyers to qualify for home financing despite a low down payment,” Johnson added. “The benefits private MI provides allows Texas homeowners to build the kind of long-term wealth and stability that comes with homeownership.”

Loans backed by private MI provide protection against mortgage credit risk and is structured to protect the GSEs in the conventional mortgage market. In 2021, the industry insured $1.4 trillion of mortgages, including $1.2 trillion of mortgages backed by the GSEs. Private MI has proven to be a reliable method for shielding the GSEs, having paid nearly $60 billion in claims since the 2008 financial crisis and housing market downturn.

USMI worked closely with federal policymakers, industry groups, and consumer organizations to support and advocate for low down payment homebuyers and homeowners throughout the year. The organization sent letters and released statements in support of bipartisan and bicameral legislative initiatives to make permanent the ability of homeowners to deduct MI premiums from federal income; submitted a comment letter on the Federal Housing Finance Agency’s (FHFA) Request for Input (RFI) on the GSEs’ Equitable Housing Finance Plans; and joined the Black Homeownership Collaborative in calling on the Biden Administration to focus on the critical need for housing production to address the significant deficit that continues to drive up home prices across the country.

The complete report is available here and more specific information on Texas 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.