MBA appreciates FHFA's effort to boost transparency of private mortgage insurers, will review proposed eligibility requirements to ensure they balance need for strong capital with preserving industry's ability to serve first-time buyers, working families
July 11, 2014
– David H. Stevens, President and CEO of the Mortgage Bankers Association (MBA), issued the following statement regarding the Federal Housing Finance Agency's (FHFA) announcement of proposed eligibility requirements for Mortgage Insurers:
“MBA appreciates FHFA’s effort to provide the market more confidence and transparency surrounding private mortgage insurers. The proposed eligibility requirements are comprehensive and we will be conducting a detailed review of the standards to ensure they properly balance the need for strong capital, while preserving the ability of the industry to cost-effectively serve first-time buyers and working families. In particular, we want to make sure that stronger capital standards for mortgage insurers are reflected in the FHFA’s and GSEs’ risk models through lower guarantee fees and loan level price adjustments so that consumers are not paying redundant fees for their coverage. A sound capital framework for the mortgage insurance industry also lays the foundation for bringing more private capital into the market through deeper risk sharing initiatives that MBA has proposed previously to the FHFA and the GSEs.”
The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site: www.mba.org.