Washington, D.C. – The Federal Housing Finance Agency (FHFA) announced today that Fannie Mae and Freddie Mac (the Enterprises) are issuing updates to the Private Mortgage Insurer Eligibility Requirements (PMIERs) – the financial and operational standards that private mortgage insurance companies must meet to provide insurance on mortgage loans acquired by the Enterprises.
“Financially sound private mortgage insurance companies play a critical role in a healthy residential mortgage market that helps borrowers, including first-time homebuyers, achieve their homeownership dreams,” said FHFA Director Sandra L. Thompson. “These updates represent an ongoing commitment to the safety and soundness of the Enterprises, ensuring that their private mortgage insurer counterparties have the necessary financial strength to pay claims in a wide range of economic environments.”
Since the Enterprises first issued the aligned PMIERs in 2015, they have periodically reviewed their standards with the goal of ensuring counterparties can meet their obligations through the economic cycle, thus improving the safety and soundness of the Enterprises and the housing finance system. The Enterprises reviewed the standards for Available Assets held by mortgage insurers to pay claims to ensure that these assets are high quality, highly liquid, and readily available when needed.
The updated standards differentiate between bonds based on credit quality and liquidity. The updates also establish limits for assets backed by residential mortgages or commercial real estate to mitigate the impact if such assets lose value during periods of housing stress. The updated standards will improve the Enterprises’ counterparty risk management and better prepare them to withstand a future stress situation while fulfilling their mission to serve as a reliable source of liquidity for equitable and sustainable housing finance throughout the economic cycle.
The updated standards will be implemented through a 24-month phased-in approach, with a fully effective date of September 30, 2026.
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The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac, and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $8.4 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on Twitter @FHFA, YouTube, Facebook, and LinkedIn.
Contacts: MediaInquiries@FHFA.gov