How can Fannie Mae offer MI coverage flexibilities? Doesn’t Fannie Mae’s Charter require credit enhancement for LTVs above 80 percent?
Fannie Mae’s regulator, FHFA, has interpreted Fannie Mae’s Charter to allow specific refinance terms for loans that Fannie Mae already owns or guarantees by providing certain flexibilities to the credit enhancement requirements of its Charter, in light of unusual and exigent market circumstances. As a result, the flexibilities are subject to important eligibility and time limitations. Please refer to FHFA’s February 20, 2009 letter to the Mortgage Insurance Companies of America, which is available at http://www.fhfa.gov/webfiles/1257/FNFRERefiInitiatives22009.pdf.
Related Questions
- Who is Fannie Mae? How can Fannie Mae help a home buyer? What is Fannie Maes low-down program? What is the Community Home Buyers program? Are there Fannie Mae programs for inner cities?
- Are existing Fannie Mae loans with lender-paid, primary MI coverage eligible for Refi Plus?
- Why doesn’t every carrier offer coverage in every county?
