Saturday, August 20, 2011

PMI Directed to Stop Insuring Additional Home Loans; Impacts on GSE and OHCS Existing Loans Not Clear.

WSJ story is HERE. Yahoo info on company is HERE.

I don't fully understand impact of action on existing loan guarantees, including those on loans held by the GSE's or originated by Oregon Housing and Community Services and other state housing finance agencies. 

Suffice it to say that I can't imagine that it bodes well for the ability of the company to pay claims on existing loans that turn sour.

I would suggest readers stay tuned for future developments, including any information about the impact from the GSE's or OHCS. 

Recent Oregon DBCS Waiver Rendered Moot.
Readers may recall that last year I posted story [HERE] about additional authority Oregon DCBS had been granted to waive capital requirements for private mortgage insurance companies without any public notice. I learned recently that Oregon's DCBS had done so for PMI though December 2011;  but I expect the Arizona regulator action Friday will render that recently granted Oregon waiver moot.

Originally created and posted on the Oregon Housing Blog.

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