What are PMIERs?
The Federal Housing Finance Administration (FHFA) published final revised Private Mortgage Insurer Eligibility Requirements (“PMIERs”), which set the requirements that private Mortgage Insurers (MIs) must meet to be eligible to insure loans sold to or guaranteed by Fannie Mae and Freddie Mac (the “GSEs”). The PMIERs include new risk-based capital requirements for MIs.
Lenders, investors and other mortgage market participants can now have even more confidence in the value and financial strength of MI. With PMIERs finalized, the industry is positioned to be in the forefront of efforts to meet the important goal of putting more private capital at risk ahead of taxpayers, including by providing upfront risk sharing and deeper MI coverage for the GSEs.
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What do the PMIERs mean for Arch MI and the MI industry?
Arch Mortgage Insurance Company (“Arch MI”), a leading provider of private mortgage insurance and a wholly owned subsidiary of Arch Capital Group Ltd., announced today that if the financial requirements for private mortgage insurers published today by the Federal Housing Finance Agency (“FHFA”) went into effect immediately, Arch MI would satisfy them.
The final Private Mortgage Insurer Eligibility Requirements (PMIERs) establish new standards that mortgage insurers are required to meet to insure loans sold to or guaranteed by Fannie Mae and Freddie Mac. Based upon our interpretation of the PMIERs and Arch MI’s current portfolio and balance sheet, Arch MI’s “available assets” exceed the ”minimum required assets” specified within the final requirements.
“We are pleased that FHFA has finalized the PMIERs and believe that setting this standard for the private mortgage insurance industry provides confidence in the value of mortgage insurance,” said David Gansberg, President and Chief Executive Officer of Arch MI. “Arch MI was in compliance with the draft PMIER financial requirements and we are proud to be fully compliant now with the financial requirements in their final form. This affirms our financial strength as an insurance counterparty. We are strongly positioned to continue to meet the needs of our customers.”
The PMIERs become effective December 31, 2015
Fannie Mae PMIERs FAQ
Freddie Mac PMIERs FAQ