Skip to main content

Fannie Mae Announces Suspension of MI Provider

NationalMortgageProfessional.com
Aug 01, 2011

John S. Forlines, vice president and single-family chief risk officer for Fannie Mae, has announced the suspension of Republic Mortgage Insurance Company (RMIC) and Republic Mortgage Insurance Company of North Carolina (RMIC-NC) as approved mortgage insurers. An official statement from Forlines claimed that as of Sept. 30, 2010, RMIC fell below the minimum policyholders’ position required by the state of North Carolina. Under state law, the minimum policyholders’ position is not less than one 25th of the insurer’s aggregate insured risk outstanding, excluding reinsurance ceded and including reinsurance assumed. RMIC received waivers from this requirement from its regulator, the North Carolina Department of Insurance (NC DOI), and thereby, was temporarily allowed to continue writing new business. The recent extension of the waiver granted by NC DOI expires Aug. 31, 2011, with no indication that any further extensions will be granted under RMIC’s current circumstances. Fannie Mae believes that NC DOI will prohibit RMIC from writing any new mortgage insurance (MI) policies in North Carolina on or after Sept. 1, 2011. In response to the North Carolina DOI’s action, Fannie Mae has announced the suspension of both RMIC and its affiliate, Republic Mortgage Insurance Company of North Carolina (RMIC-NC), as approved mortgage insurers effective immediately, as provided by Fannie Mae’s Qualified Mortgage Insurer Approval Requirements, as well as per the terms of RMIC-NC’s limited approval. Fannie Mae will no longer purchase or securitize any mortgage loan insured by RMIC or RMIC-NC dated before May 1, 2011 or on or after Sept. 1, 2011. Only RMIC- and RMIC-NC-insured mortgage loans that have note dates during the intervening period are eligible. This eligibility window is intended to provide a reasonable period for pipeline clearance. In addition, eligible mortgage loans must have pool issue dates on or before Nov. 1 for MBS, or have delivery dates on or before Nov. 30 for whole loans. This includes mortgage loans having either borrower-paid or lender-paid MI from RMIC or RMIC-NC. Fannie Mae will continue to accept delivery of certain RMIC- and RMIC-NC-insured refinanced loans (RefiPlus, DU RefiPlus, and modified or refinanced balloons) for both mortgage-backed securities (MBS) and whole loan purchase, but only if continuation of the coverage is effected through modification of the existing mortgage insurance certificate.
Published
Aug 01, 2011
'A Long Road To Normal'

Nominated again to lead The Fed, Powell tells Senate committee to expect three rate hikes, but 'if we have to raise interest rates more over time, we will.'

Regulation and Compliance
Jan 11, 2022
CFPB: Complaint Response Worsens At Big 3 Credit Bureaus

Report claims Equifax, Experian, and TransUnion routinely failed to fully respond to consumers with errors.

Regulation and Compliance
Jan 10, 2022
The Fed Names Chairs, Deputy Chairs For 12 Reserve Banks

In recent years, the Federal Reserve System has worked to increase the overall diversity of the Reserve Bank and branch boards of directors and continues to build on those efforts.

Regulation and Compliance
Jan 06, 2022
The Fed: Rate Hike Likely Coming in June

Federal Open Market Committee's December minutes reveal discussion of first hike in federal funds rate in 2Q of 2022, as well as of ending asset purchases by March.

Regulation and Compliance
Jan 05, 2022
AARMR No Protection For Savanah Scares

Conference provides opportunity for regulators to interact, discuss common topics

Regulation and Compliance
Jan 04, 2022
McCargo Sworn In As Ginnie Mae President

Former HUD official becomes the first female to lead the Government National Mortgage Association.

Regulation and Compliance
Jan 04, 2022