U.S. housing finance director comments on continued vital role of private mortgage insurance in Housing Recovery Plan MortgagePress.comMortgage Insurance Companies of America, MICA, James B. Lockhart III, FHFA
In a letter to the Mortgage Insurance Companies of America
(MICA), Federal Housing Finance Agency (FHFA) Director James B.
Lockhart III emphasized the vital role the private mortgage
insurance industry will play in President Obama's housing recovery
Director Lockhart notes in his letter that Fannie Mae and
Freddie Mac, as well as the nation's homeowners, need the continued
assistance of mortgage insurers to provide market stability and
safety and soundness for the housing finance system. The letter
makes clear that mortgage insurance will continue to credit enhance
loans that are sold to the GSEs with loan to value ratios above 80
percent, consistent with their charter. To view the letter click
"We commend Director Lockhart for offering this important
clarification of the President's housing recovery program," said
MICA President Kevin D. Schneider. "The purpose of the program is
to help mitigate losses to American homeowners during this
stressful period. We support these efforts because they will help
families maintain their homes by easing the financial strain of
mortgage obligations they may be unable to afford."
"The private mortgage insurance industry is a vital component of
the nation's housing finance system," added MICA Executive Vice
President Suzanne C. Hutchinson. "Mortgage insurers make
homeownership more affordable by helping borrowers seeking a low
down payment home loan. We will continue to work with Fannie Mae
and Freddie Mac to mitigate losses in the mortgage market."
In his letter to MICA, Lockhart also reiterated his call for
capital support for the industry so that mortgage insurers might
expand their ability to make affordable and sustainable mortgages
available in the current market environment.
MICA is the trade association representing the private mortgage
insurance industry. Its members help loan originators and investors
make funds available to home buyers for low down payment mortgages
by protecting these institutions from a major portion of the
financial risk of default.
MICAs members have helped more than a million families during
the past twelve months save money by buying or refinancing a home
with less than the traditional 20 percent down payment. Private
mortgage insurance premiums are now tax deductible for many
borrowers who purchase or refinance a home.
For more information, visit www.privatemi.com.