Contact: MICA (202) 682–2683
Email: pat@micadc.org
U.S. Housing Finance Director Comments on Continued Vital Role of Private Mortgage Insurance in Housing Recovery Plan
Washington, D.C., February 20, 2009—In a letter today to the Mortgage Insurance Companies of America (MICA), Federal Housing Finance Agency (FHFA) Director James B. Lockhart III emphasized the vital role the private mortgage insurance industry will play in President Obama’s housing recovery program.
Director Lockhart notes in his letter that Fannie Mae and Freddie Mac, as well as the nation’s homeowners, need the continued assistance of mortgage insurers to provide market stability and safety and soundness for the housing finance system. The letter makes clear that mortgage insurance will continue to credit enhance loans that are sold to the GSEs with loan to value ratios above 80 percent, consistent with their charter. A copy of the letter is attached.
“We commend Director Lockhart for offering this important clarification of the President’s housing recovery program,” said MICA President Kevin D. Schneider. “The purpose of the program is to help mitigate losses to American homeowners during this stressful period. We support these efforts because they will help families maintain their homes by easing the financial strain of mortgage obligations they may be unable to afford.”
“The private mortgage insurance industry is a vital component of the nation’s housing finance system,” added MICA Executive Vice President Suzanne C. Hutchinson. “Mortgage insurers make homeownership more affordable by helping borrowers seeking a low down payment home loan. We will continue to work with Fannie Mae and Freddie Mac to mitigate losses in the mortgage market.”
In his letter to MICA, Lockhart also reiterated his call for capital support for the industry so that mortgage insurers might expand their ability to make affordable and sustainable mortgages available in the current market environment.
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