MGIC Comments on the Recently Adopted PMIERs Updates

Core Viewpoint - The updates to the Private Mortgage Insurer Eligibility Requirements (PMIERs) by Fannie Mae and Freddie Mac are significant for the private mortgage insurance industry, impacting the Available Assets standards and the overall risk management framework [1][3]. Group 1: Company Insights - Mortgage Guaranty Insurance Corporation (MGIC) emphasizes the importance of private mortgage insurance in the housing finance system, highlighting its role in supporting low down payment borrowers while mitigating mortgage credit risk for GSEs and taxpayers [2]. - Tim Mattke, CEO of MGIC, expresses pride in the company's strong capital position and the collaboration with GSEs to support prudent changes to PMIERs [2]. Group 2: Regulatory Changes - The recent updates to PMIERs include changes to exclusions, concentration limits, and haircuts on investments qualifying as Available Assets, which will be phased in over 24 months, with full implementation by September 30, 2026 [3]. - If the changes had been effective as of June 30, 2024, MGIC's Available Assets of $5.8 billion would have decreased by approximately 1%, equating to a reduction of $50 million, while the PMIERs excess would stand at $2.3 billion [3].