The Federal Housing Finance Agency (FHFA) is seeking input on draft requirements that would apply to private mortgage insurance companies that insure mortgage loans owned or guaranteed by Fannie Mae and Freddie Mac. If put into effect, these requirements would apply only to private mortgage insurers that are currently approved to do business with Fannie Mae or Freddie Mac, as well as those seeking approval in the future.
“NAHB is concerned that this proposal could increase the cost and impede the availability of private mortgage insurance at a time when the housing recovery remains fragile,” says Kevin Kelly, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Wilmington, Del.,
“FHFA has provided 60 days to comment on this proposal and NAHB intends to respond. Credit conditions are already extremely tight for qualified home borrowers, particularly those who do not have pristine credit scores. FHFA needs to take great care that these changes are implemented in a careful manner to avoid any unintended consequences that would shut creditworthy buyers out of the housing market.”
FHFA has requested input for itself and the Enterprises within 60 days or by September 8, 2014.