Even with the implementation of new asset haircuts and other restrictions into the private mortgage insurance eligibility requirements framework, GSE-approved insurers say they will still have large available asset buffers.
Stakeholders say the GSEs’ proposed definition of “first-generation homebuyer” in their equitable housing-finance plans unfairly excludes many of the people the enterprises and the FHFA want to help.
According to Urban Institute, mortgage insurance payouts mean GSE losses on loans with LTVs over 80% are comparable to those on loans with LTVs below 80%.