National MI: Private MI Eligibility Standards a Step in the Right Direction
"National MI believes that the proposed eligibility requirements for private mortgage insurers will go a long way to help restore confidence in an industry affected by the recent housing crisis," Shuster said. "A strong and financially sustainable private mortgage insurance industry is a key component of a healthy residential mortgage market."
The FHFA's 2013 Conservatorship Scorecard called for the government-sponsored enterprises (GSEs) to "develop counterparty risk management standards for mortgage insurers that include uniform master policies and eligibility requirements." As expected, the proposed requirements released today seek to establish more stringent eligibility standards for GSE-approved mortgage insurers and emphasize claims-paying ability through the implementation of robust financial requirements. "National MI believes it will be well-positioned to meet the new eligibility requirements when they become effective and to continue serving the needs of mortgage lenders," Shuster said.
National MI will further evaluate the proposed eligibility requirements and consider submitting comments, as appropriate. "We welcome the level playing field created by these new eligibility requirements, and believe that strong, transparent, financial strength requirements will ensure the industry is well-capitalized to take on an increasing role in providing credit enhancement to the housing finance industry as the government seeks to reduce its footprint," Shuster said.
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Certain statements contained in this press release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the U.S. Private Securities Litigation Reform Act of 1995. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as "anticipate," "believes," "can," "could," "may," "predicts," "potential," "should," "will," "estimate," "plans," "projects," "continuing," "ongoing," "expects," "intends" and similar words or phrases. All forward-looking statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed in them, including the terms of the final GSE eligibility requirements and the timing of their implementation. Many risks and uncertainties are inherent in our industry and markets. Others are more specific to our business and operations. These risks and uncertainties include, but are not limited to, those set forth under the heading "Risk Factors" in our most recent Registration Statement on Form S-1, and described from time to time in subsequent reports, filed with the
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