Freddie Mac: Revised Requirements for Private Mortgage Insurance Companies Released
On April 17, Freddie Mac issued a release titled Revised Requirements for Private Mortgage Insurance Companies Released.
Revised Requirements for Private Mortgage Insurance Companies Released
Today, at the direction of the Federal Housing Finance Agency (FHFA), we released the revised private mortgage insurer eligibility requirements (PMIERs) that take effect on December 31, 2015. The PMIERs apply to private mortgage insurance (MI) companies that provide coverage for loans sold to Freddie Mac.
No action is required from our Seller/Servicers. You may continue doing business with MI companies listed on our Exhibit 10 [pdf], Freddie Mac-Approved Mortgage Insurers, for mortgages you intend to sell to Freddie Mac.
We’ll work with our approved MI companies to address potential gaps in meeting the revised eligibility requirements. This includes implementing a transition plan for MI companies that do not meet the financial requirements as of December 31, 2015.
As in the past, we’ll notify you if there is a change in the approved status of an MI company listed on Exhibit 10 and provide instructions for mortgages covered by those companies.
The PMIERs, under the oversight of FHFA, were updated to help ensure private MI companies you use have strong underwriting and quality control practices and can provide adequate loss protection coverage, regardless of market conditions, for mortgages you sell to Freddie Mac.
For More Information
- FHFA press release.
- Freddie Mac PMIERs document and exhibits.
- FAQs [pdf] on the new PMIERs.
- Freddie Mac statement on the new PMIERs.
- Single-Family Seller/Servicer Guide Section 27.1, Mortgage Insurance Requirements.
Please click here to view the release online.
Safeguard Properties is the mortgage field services industry leader, preserving vacant and foreclosed properties across the U.S., Puerto Rico, Virgin Islands and Guam. Founded in 1990 by Robert Klein and headquartered in Cleveland, Ohio, Safeguard provides the highest quality service to our clients by leveraging innovative technologies and proactively developing industry best practices and quality control procedures. Consistent with Safeguard’s values and mission, we are an active supporter of hundreds of charitable efforts across the country. Annually, Safeguard gives back to communities in partnership with our employees, vendors and clients. We also are dedicated to working with community leaders and officials to eliminate blight and stabilize neighborhoods. Safeguard is dedicated to preserving today and protecting tomorrow. Website: www.safeguardproperties.com.