Despite the fact that PMI has been acting as a reinsurer to Arch Mortgage Insurance (Arch bought some of its assets in 2014 as it gained entry to the sector), PMI has a bare-bones website and a skeleton management crew headed by Ray Chang and Thomas Clancy, who are listed as chief financial officer and chief operating officer, respectively.
Priority Financial still wants a Ginnie eagle and believes it has the financial wherewithal to make grade. “We want to resubmit, but we’ve had no communication from them,” said CEO Mark Shenkman.
Combined MBS issuance by the three agencies fell $38.26 billion during the second quarter. Sales of California loans to the agencies dropped $36.94 billion from the first quarter.
But there's a catch. Fannie and Freddie now say they will allow PMIs to issue dividends without prior approval as soon as the third quarter, provided their excess PMIERS capital levels are greater than 50%. As of the fourth quarter, the excess capital threshold falls to just 15%.
First-timer loans with private mortgage insurance slipped to 38.6% in the first quarter, down 9 basis points, while the share of FTHB loans with no MI was basically unchanged.
FHA is dedicating resources to servicing oversight and enforcement in the COVID and post-COVID era. In sum, servicers should expect lending monitoring exams to be scheduled in the coming months.
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