U.S. Mortgage Insurers

USMI joined a diverse coalition of stakeholders in the housing finance system in sending letters to the House Committee on Ways and Means Chairman Jason Smith (R-MO) and Ranking Member Richard Neal (D-MA) regarding the tax treatment of mortgage insurance premiums. As tax writers assess the expiring and permanent provisions of the Tax Cuts and Jobs Act (TCJA) we encourage congressional action to support existing homeowners and prospective homebuyers by reinstating, making permanent, and expanding eligibility for the mortgage insurance premium tax deduction, which was available to eligible taxpayers from 2007 through 2021.     The tax deduction for mortgage insurance premiums has long enjoyed bipartisan support, and the coalition firmly believes this targeted deduction for the benefit of low down payment borrowers is both good tax and housing policy. We urge Congress to include the bipartisan, bicameral Middle Class Mortgage Insurance Premium Act (HR 4212, S 1938) in any end of year tax package or 2025 tax reform legislation.    Signatories of the letter includes the America's Credit Unions, American Bankers Association, American Land Title Association, Asian Real Estate Association of America (AREAA), Casita Coalition, COMMUNITY HOME LENDERS OF AMERICA, Housing Policy Council, ICBA, Leading Builders of America, Manufactured Housing Institute, Mortgage Bankers Association, NAACP, NAHREP - National Association of Hispanic Real Estate Professionals®, National Association of REALTORS®, National Council of State Housing Agencies (NCSHA), National Housing Conference, and RESPRO®.     Click here to read the full letter to Chairman Smith: https://lnkd.in/gZ2hCPhe Click here to read the full letter to Ranking Member Neal: https://lnkd.in/gE7nHCJV

During this Hispanic Heritage Month, USMI continues to highlight how the Hispanic community has contributed to the U.S. housing market. New data from a soon to be released USMI poll provides important information on how and why the Hispanic population is entering into homeownership. Even in a tight housing market, Hispanics are showing strong interest in entering into homeownership, with 75% answering that home ownership is important to them – up 8% from 2021. Additionally, nearly 125,000 Hispanics purchased a home with a low down payment back by private MI in 2023, representing $41 billion in mortgages – showing how private MI benefits minority homeownership while protecting taxpayers and the government. USMI’s survey found that the top reasons Hispanics are choosing to purchase a home are the stability it provides (36%), and the investment opportunity it presents (36%). Click here to read the full blog: https://lnkd.in/gUdhCxwk

USMI joins Mortgage Bankers Association and other leading industry stakeholders in the formation of the CONVERGENCE Collaborative. The CONVERGENCE Collaborative is a coordinated effort with a goal of creating evidence-based tools and roadmaps to help all industry stakeholders better reach aspiring minority homeowners.  Other participants include American Land Title Association (ATLA), DHI Mortgage, Fannie Mae, Fifth Third Bank, Freddie Mac, Lennar Mortgage, the National Association of REALTORS® (NAR), Navy Federal Credit Union, Pulte Financial Services, Taylor Morrison Home Funding, Inc. NMLS #8588, and Wells Fargo Home Lending.     “USMI’s members work every day to help borrowers overcome one of the biggest barriers to homeownership for first-time, low- and moderate-income, and minority homebuyers: the need for a large cash down payment,” said Seth Appleton, USMI’s President. “We welcome the opportunity to partner with the CONVERGENCE Collaborative on collective strategies to support sustainable and affordable homeownership for underserved communities across the country.”      Learn more about the work that the Collaborative is doing at www.mba.org/convergence where they will be sharing its success stories as we work toward solving this important challenge.  

Did you know Private MI helped nearly 800,000 people become homeowners in 2023? As the pioneer of the modern-day private mortgage insurance industry, that's a stat that makes us proud 💕 🏡. Get more facts about MI from U.S. Mortgage Insurers annual report https://bit.ly/3LV7EJA. The report breaks down low down payment mortgage lending with MI in all 50 states and the District of Columbia. #LoanOfficer #MortgageIndustry #WeAreMGIC #USMI #MortgageInsurance #MortgageLoanOfficer

Exciting news! The latest annual report from U.S. Mortgage Insurers reveals that private MI has helped secure mortgage financing for nearly 39 million low down payment borrowers over its 67-year history. For more insightful highlights, check out the report here: https://okt.to/N4dm7S

Yesterday, USMI released its annual state report on low down payment mortgage lending. In comparing data from previous years, the report finds that the first-time buyer and 3% down payment (also known as 97% loan-to-value) segments of the private MI market have grown in market share year-over-year since 2020 across most states. Vermont, Delaware, Maine, South Dakota, and Missouri saw the biggest increase in first-time homebuyers’ share of the private MI market since 2020. Missouri, Michigan, Indiana, Iowa, and Ohio saw the largest growth in the 3% down payment segment’s share of the private MI market since 2020. Texas, Florida, California, Illinois, and Ohio continue to rank as the overall top five states for mortgage financing with private MI in 2023. Key findings from the report include: - 800,000: The number of people in 2023 who became homebuyers thanks to private MI. - Nearly 39 million: The number of low down payment borrowers private MI has helped securing mortgage financing over its 67-year history. - 27: The number of years it could take a household earning the national median income of $74,580 to save 20% (plus closing costs), for a $394,100 single-family home, the national median sales price. - 67%: The reduction in years a homebuyer has to wait to achieve home ownership by making a 5% down payment with a mortgage backed by private MI. - 64%: First-time homebuyers’ share of purchase mortgages backed by private MI. “Private mortgage insurance is helping to expand access to homeownership in a challenging market for prospective homebuyers,” continued Appleton. “While buyers face many obstacles in purchasing a home, private mortgage insurance helps solve one of the biggest challenges – the need for a large cash down payment – by allowing buyers to put down as little as 3%.” Read more here: https://lnkd.in/gTM96Vyz

U.S. Mortgage Insurers named Enact’s Rohit Gupta as the association's new Chairman of the Board. Mr. Gupta is currently President, CEO, and Director of Enact Holdings and succeeds Essent Guaranty, Inc. Group’s Adolfo Marzol. “Rohit’s deep mortgage insurance expertise, public policy experience and passion for the valuable role our industry plays will facilitate continued success in the important work of USMI,” said outgoing USMI Chairman Adolfo Marzol. “I am honored to pass the torch to Rohit.” USMI President Seth Appleton added, “Rohit’s dedication to affordable and sustainable homeownership backed by private capital is invaluable to USMI’s efforts moving forward. Rohit’s previous experience as Chairman of the Board makes this a seamless transition and positions the organization for continued success.”

It was an honor to be inducted as the new chairman of the U.S. Mortgage Insurers board yesterday. Mortgage insurance is a critical component of enabling affordable homeownership and USMI does important work advocating for a system that supports private mortgage insurance and the homebuyers who benefit from it. I’m excited to take a larger role in USMI’s efforts as chairman, and look forward to continuing to work with other association members as we seek to expand access to affordable homeownership.

USMI named Enact Mortgage Insurance’s Rohit Gupta as the association's new Chairman of the Board. Mr. Gupta is currently President, CEO, and Director of Enact Holdings and succeeds Essent Guaranty, Inc. Group’s Adolfo Marzol. “The role the private MI industry plays in providing first-time and low- to moderate-income borrowers with access to affordable and sustainable mortgage credit cannot be overstated, particularly in the current high interest rate market. Our industry remains focused on advancing accessible and affordable homeownership for underserved communities, while ensuring the safety and soundness of the housing finance system,” said Rohit Gupta, incoming Chairman of the USMI Board. “I look forward to once again serving as Chair and working with USMI’s Board, staff, and external stakeholders.” USMI President Seth Appleton added, “Rohit’s dedication to affordable and sustainable homeownership backed by private capital is invaluable to USMI’s efforts moving forward. Rohit’s previous experience as Chairman of the Board makes this a seamless transition and positions the organization for continued success.” https://lnkd.in/eu-ReAij

Seth Appleton, President of the U.S. Mortgage Insurers (USMI), issued the following statement on the Federal Housing Finance Agency’s (FHFA) conditional approval of the proposed “Freddie Mac Single-Family Closed-End Second Mortgages” product, pursuant to the Prior Approval for Enterprise Products Final Rule. This rule is a key pillar in maintaining the safety and soundness of Fannie Mae and Freddie Mac, the government-sponsored enterprises (GSEs), and ensuring that the public and industry stakeholders have transparency into the GSEs’ proposed activities and products:     “USMI appreciates FHFA’s publication of Freddie Mac’s proposed ‘Purchase of Single-Family Closed-End Second Mortgages’ product for public comment consistent with the Prior Approval of Enterprise Products Rule process. After carefully reviewing the proposal, USMI urged FHFA to disapprove of the proposed product. While today’s announcement includes important limitations to the pilot, further clarifications should be provided including on how loan-to-value (LTV) ratios will be calculated, information about applicable debt-to-income (DTI) limitations, a specific exclusion for ‘piggyback loans,’ and additional details on capital and pricing treatment. USMI recommended that any future expansion of an approved product be subject to additional public notice and comment, and we are pleased that Director Thompson included this policy as part of FHFA’s conditional approval.”    Read the full statement here: https://bit.ly/3xvaamc   For more details on USMI’s requested clarifications and comment letter, click here: https://bit.ly/3VdwUQw