Statement on Updated Private Mortgage Insurer Eligibility Requirements
On April 17, 2015, Fannie Mae published the revised Private Mortgage Insurer Eligibility Requirements (PMIERs) and provided notice that we were evaluating options regarding the treatment of loans with lender-paid mortgage insurance (LPMI) and would communicate an update by June 30, 2015. Today, we have updated the PMIERs to incorporate requirements for loans with LPMI and a few minor clarifications. The updated PMIERs can be found here.
Rob Schaefer, Vice President of Credit Enhancement Strategy & Management made the following statement:
“Lender-Paid Mortgage Insurance poses longer term exposure for our mortgage insurance counterparties, relative to similar mortgage insurance that is purchased by the borrower. The adjustments in the PMIERs update establish minimum required asset amounts that appropriately reflect that longer horizon and ensure Fannie Mae’s mortgage insurance providers are strong counterparties for the future.”