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Private mortgage insurers, Fannie Mae and Freddie Mac are negotiating with the FHA on single-family, risk-sharing programs.
These initiatives could be accomplished without congressional authorization under the FHA's current authority, according to draft HUD documents obtained by REFT.
"We have conducted exploratory discussions," said a Fannie Mae spokesperson. "We are interested in the FHA single-family, risk-sharing program as a potential area of development for Fannie Mae." A Freddie Mac spokesperson confirmed that negotiations are going on.
So far, at least two PMIs are said to be interested in the FHA proposal.
"We look forward to the opportunity to work with the FHA to find ways to expand homeownership," said Mark Goldhaber, a first vice president of GE Capital Mortgage Insurance Cos.
Commonwealth Mortgage Acceptance Corp. is said to be possibly interested.
Lou Zellner, senior vice president at Mortgage Guaranty Insurance Corp., said the fact that the FHA was looking at risk sharing is a positive development.
The FHA plan could give mortgage insurers an opportunity to expand...