The general fear is that higher-than-needed capital standards will cause mortgage insurers to hold unnecessary amounts of assets that will force the industry to raise premiums.
“Fannie and Freddie have made tremendous strides to provide clarity in the system and create innovations,” said Peter Carroll, executive vice president for mortgage policy and counter party relations at Quicken Loans.
First Horizon announced on Thursday that its regional bank agreed to a $212.5 million settlement with the Department of Justice and the Department of Housing and Urban Development. The settlement relates to First Tennessee Bank’s underwriting and origination of FHA-insured mortgages from 2006 through 2008.