Analysis - Deep Coverage MI

New Analysis Demonstrates How Greater Front End Risk Sharing with MI

Reduces GSE and Taxpayer Exposure, Benefits Borrowers

(October 19, 2015) U.S. Mortgage Insurers (USMI®) today released a new study demonstrating how housing finance risks can be significantly reduced for the housing finance Government Sponsored Enterprises (GSEs) and taxpayers, while maintaining access to homeownership with improved borrower economics, through greater use of private mortgage insurance (MI).

Among the key findings of “Analysis of Deep Coverage Mortgage Insurance,” prepared by Milliman, Inc., covering additional mortgage credit risk with MI:

  • Almost doubles the amount of loss protection afforded to the GSEs;
  • Would allow the GSEs to reduce their committed capital for this risk by approximately 75 percent, resulting in lower GSE guarantee fees (G-Fees); and
  • Reduces borrower costs by an average of $8 per month or approximately $2,300 over the average life of the loan.

The full release can be found here.

The full report can be found here.


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