Former Freddie Mae CEO Don Layton suggests short- and long-term solutions for the liquidity problems faced by nonbank mortgage servicers.

Industry advocates point out that, unlike other forms of credit-risk transfer, private mortgage insurance stands in front of all other losses.

The percentage of private mortgage insurance sales tied to the GSEs’ low-downpayment programs dropped from 20% in July to 12% in December, with industry players pinning the fall on lower income thresholds.

After much anticipation from the mortgage insurance industry, Fannie Mae and Freddie Mac released their updated requirements that private MIs must meet to be eligible to provide mortgage insurance on GSE loans.