Op-Ed: Automated mortgage insurance cancellation is a dangerous plan
In response to a recent idea from ex-Freddie Mac employees that suggests prematurely canceling private mortgage insurance (MI) using automated valuations models (AVM), USMI President Seth Appleton called the concept a “short-sighted and risky move that could threaten housing affordability and financial stability in the mortgage finance system,” in American Banker. Appleton says that the idea should be rejected because it creates risk exposure to the GSEs, makes homeownership less affordable for new homebuyers, impedes the GSEs’ ability to build capital, and runs counter to the intent of the GSEs’ congressional charter requirements. Read the full opinion piece in American Banker.
