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Along with their approval, Fannie Mae and Freddie Mac have indicated that they will be ready to accept loans insured by National MI in the second quarter of 2013. Both
"These approvals by Fannie Mae and Freddie Mac mark a huge milestone for National MI," said
National MI's entry injects over
National MI was founded by Shuster and
"National MI's approval to provide mortgage insurance on loans delivered to Fannie Mae will provide greater capacity in the market", said
"Freddie Mac is pleased that National MI is able to provide Freddie Mac's Sellers with additional mortgage insurance capacity by bringing the industry new capital at a level that is consistent with our safety and soundness principles," said
The charters of the GSEs require additional credit support for conventional loans with loan to value ratios in excess of 80 percent. This credit support most often takes the form of private mortgage insurance which pays an insurance benefit to the lender, or investor in a mortgage loan, under certain circumstances when a loan defaults. The mortgage insurance provider is usually chosen by the mortgage lender.