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Home » News » Private MIs Propose Front-End Risk Sharing to Lower G-Fees; Concept May Not Gain Traction
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Private MIs Propose Front-End Risk Sharing to Lower G-Fees; Concept May Not Gain Traction

October 23, 2015
The trade group for private mortgage insurers this week said Fannie Mae and Freddie Mac programs that would allow sellers to obtain deeper MI coverage, up to 50 percent of the home’s value, could help lower guaranty fees charged by the two government-sponsored enterprises. U.S. Mortgage Insurers said greater front-end risk sharing almost doubles the amount of loss protection to the GSEs and allows them to reduce their committed capital for this risk by about 75 percent. As a result, the group noted...
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