With ongoing rate increases, Fannie Mae and Freddie Mac have been working to address a host of issues concerning the lender-placed insurance business and said they observed a drop in premiums.After the Federal Housing Finance Agency directed the GSEs to help come up with ways to reduce the costs of LPI over the past several years, in 2015 they established a three-tiered minimum deductible for LPI coverage resulting in higher deductibles but lower premium costs, according to the GSEs’ 2015 progress report. This was in correlation with an FHFA directive in 2013 that prohibited Fannie and Freddie servicers from continuing to receive commissions or other similar incentive-based compensation from LPI carriers.