GSE Private Mortgage Insurance Profile: 3Q13

In the third quarter of 2013, private mortgage insurance covered more than one of every five loans sold to Fannie Mae and Freddie Mac, a significant increase from just six months earlier when the ratio was one of seven.

In the quarterly report, GSE Private Mortgage Insurance Profile, Inside Mortgage Finance looks at the details of this business: what volume of PMI-covered loans each lender sold, what the loan-to-value ratios were, how much of the lender’s GSE sales had PMI coverage, what channel the loans originated in, and which GSE the loans were sold to.

In the report, you’ll find charts

  • Ranking the lenders by volume of loans with private mortgage insurance,

  • Ranking the lenders by volume of loans originated in the broker or retail channels with private mortgage insurance, and

  • Ranking states where PMI-insured loans were originated.

For the first two charts, an alphabetical listing is also provided in the PDF/print edition.

The data in this report will help you learn who is using private mortgage insurance, how heavily they are relying on it for their GSE business, and what the characteristics are of the typical loan that they are insuring.

You would learn from the 3Q13 report that:

  • Fairway Independent Mortgage Corp. used private mortgage insurance on 40.6 percent of the loans it sold to the GSEs that were originated in the retail and broker channels, more than any other top 50 lender using those channels.

  • Most loans with MI coverage sold to the GSEs in the third quarter had a loan-to-value ratio between 85 and 97 percent. That was true for Green Tree Servicing’s retail- and broker-originated loans as well. But Green Tree had more MI-covered loans with LTV between 97 and 105 than other lenders, 18.0 percent. On average, only 4.5 percent of retail/broker loans had LTVs in this range.

  • California was home to more MI-covered loans than any other state ($5.9B in 3Q13). But Kansas, where 67.8 percent of loans included private mortgage insurance, was tops in share.

Print edition with shipping in the U.S. - $808.00
Print edition with shipping outside the U.S. - $858.00
PDF Format - $808.00

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After the November elections, how long will it take for a new Congress and White House to pass GSE reform legislation?

I’m confident a bill will be passed the first year.


2 to 3 years. GSE reform is complicated.


Sadly it won’t happen in a Clinton or Trump first term.


Not in my lifetime.


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