Statement: Updates to PMIERs Available Asset Standard
WASHINGTON — U.S. Mortgage Insurers (USMI) President Seth Appleton today issued the following statement on updated guidance provided by the government sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, under the oversight of the Federal Housing Finance Agency (FHFA), to the Private Mortgage Insurer Eligibility Requirements’ (PMIERs) Available Asset Standard. Changes introduced by the updated guidance will be implemented on a phased basis beginning March 31, 2025, and be fully effective on September 30, 2026. PMIERs are a set of operational and risk-based capital requirements for private mortgage insurance (MI) companies to be approved to insure loans acquired by Fannie Mae and Freddie Mac.
“PMIERs are among the most successful housing market reforms introduced since the Great Financial Crisis and are an important component of a strong, resilient, and reliable private MI industry that is well-positioned to serve low down payment borrowers, mortgage lenders, and the GSEs, and to protect taxpayers in all economic cycles.
“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.”
Background on Private Mortgage Insurer Eligibility Requirements (PMIERs)
PMIERs consist of capital, financial, operational, and quality control standards for private mortgage insurers to be approved to insure loans acquired by the GSEs. Among the requirements is that “[a]pproved insurers must have adequate liquidity and claims-paying capacity during periods of economic stress.” As of June 30, 2024, private mortgage insurers held more than $26.8 billion in PMIERs available assets, representing a 171% sufficiency ratio.
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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.
