NDBA - North Dakota Bankers Association
08/28/2024 | Press release | Distributed by Public on 08/28/2024 07:15
Fannie Mae, Freddie Mac Update Private Mortgage Insurer Eligibility Requirements
The Federal Housing Finance Agency has announced that Fannie Mae and Freddie Mac are issuing updates to their private mortgage insurer eligibility requirements, which are the financial and operational standards that private mortgage insurance companies must meet to provide insurance on mortgage loans acquired by the enterprises.
The enterprises have periodically reviewed the requirements since they were first issued in 2015. One change this year is that the updated standards differentiate between bonds based on credit quality and liquidity, according to FHFA. They also establish limits for assets backed by residential mortgages or commercial real estate to mitigate the effects if the assets lose value during periods of housing stress.
To read more, visit: https://www.fhfa.gov/news/news-release/fannie-mae-and-freddie-mac-update-their-private-mortgage-insurer-eligibility-requirements-2024
The enterprises have periodically reviewed the requirements since they were first issued in 2015. One change this year is that the updated standards differentiate between bonds based on credit quality and liquidity, according to FHFA. They also establish limits for assets backed by residential mortgages or commercial real estate to mitigate the effects if the assets lose value during periods of housing stress.
To read more, visit: https://www.fhfa.gov/news/news-release/fannie-mae-and-freddie-mac-update-their-private-mortgage-insurer-eligibility-requirements-2024