FHFAs Consideration of Expanded Mortgage Insurance Use on GSE Loans to Benefit Strongest; MI Firms Hopeful
October 6, 2011
The strongest mortgage insurers benefit the most if the Federal Housing Finance Agency follows through on recent comments that it is considering expanding use of MI as one of a number of potential risk sharing strategies for the government-sponsored enterprises, according to a recent report by Moodys Investors Service. Moodys noted that uncertainty about the role of private MI in a post-GSE environment remains a key credit concern for the industry. If the FHFA opted for an increase in mortgage insurance as a way to share risk, even as the GSE mortgage universe shrinks, the action would likely to be a...