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Home » Store » Inside The GSEs » Leaders Call for De-Risking GSEs with Mortgage Insurance

Leaders Call for De-Risking GSEs with Mortgage Insurance

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Inside The GSEs

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The push for further de-risking Fannie Mae and Freddie Mac, especially by expanded up-front risk sharing by way of private mortgage insurers, is showing no signs of slowing down in 2016.The U.S. Mortgage Insurers said this week that, “The time is right to move forward to expand front-end risk sharing with MI, and USMI members are ready to do more.” The trade group explained that as policymakers are considering proposals to de-risk the GSEs, MIs are strong counterparties and the new capital standards that went into effect in 2015 further enhance reliability. “MI is a first layer of protection against mortgage credit losses and a time-tested method of...
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