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SEC Filings

10-Q
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE filed this Form 10-Q on 05/07/2015
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ratios greater than 80%, which generally are required to carry mortgage insurance. As of March 31, 2015 and December 31, 2014, approximately 1% of our total risk in force mortgage insurance coverage was pool insurance and approximately 2% of our total insurance in force mortgage insurance coverage was pool insurance.
Table 35: Mortgage Insurance Coverage
 
 
 
Risk in Force(1)
 
 
Insurance in Force(2)
 
 
 
 
 
 
As of
 
 
As of
 
Deferred
 
 
 
 
March 31,
 
 
December 31,
 
 
March 31,
 
December 31,
 
Payment
 
 
 
 
2015
 
 
2014
 
 
2015
 
2014
 
Obligation %(3)
 
 
 
 
(Dollars in millions)
 
 
 
Counterparty:(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Approved:(5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United Guaranty Residential Insurance Co.
 
 
$
25,327

 
 
 
$
25,018

 
 
 
$
98,083

 
 
$
96,906

 
 
 
 
Radian Guaranty, Inc.
 
 
24,348

 
 
 
24,284

 
 
 
95,929

 
 
95,845

 
 
 
 
Mortgage Guaranty Insurance Corp.
 
 
22,449

 
 
 
22,184

 
 
 
86,982

 
 
86,069

 
 
 
 
Genworth Mortgage Insurance Corp.
 
 
15,639

 
 
 
15,477

 
 
 
62,021

 
 
61,408

 
 
 
 
Essent Guaranty, Inc.
 
 
7,009

 
 
 
6,637

 
 
 
29,072

 
 
27,679

 
 
 
 
Arch Mortgage Insurance Co.
 
 
3,177

 
 
 
3,049

 
 
 
12,843

 
 
12,267

 
 
 
 
National Mortgage Insurance Corp.
 
 
663

 
 
 
468

 
 
 
7,007

 
 
6,286

 
 
 
 
Others
 
 
197

 
 
 
185

 
 
 
1,172

 
 
1,092

 
 
 
 
Total approved
 
 
98,809

 
 
 
97,302

 
 
 
393,109

 
 
387,552

 
 
 
 
Not approved:(5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PMI Mortgage Insurance Co.(6)
 
 
5,629

 
 
 
5,895

 
 
 
22,559

 
 
23,655

 
 
30
%
(7) 
Republic Mortgage Insurance Co.(6)(8)
 
 
4,585

 
 
 
4,796

 
 
 
18,445

 
 
19,393

 
 

(8) 
Triad Guaranty Insurance Corp.(6)
 
 
1,526

 
 
 
1,585

 
 
 
5,558

 
 
5,858

 
 
25
%
 
Others
 
 
11

 
 
 
12

 
 
 
54

 
 
57

 
 
 
 
Total not approved
 
 
11,751

 
 
 
12,288

 
 
 
46,616

 
 
48,963

 
 
 
 
Total
 
 
$
110,560

 
 
 
$
109,590

 
 
 
$
439,725

 
 
$
436,515

 
 
 
 
Total as a percentage of single-family guaranty book of business
 
 
4

%
 
 
4

%
 
 
15

%
 
15

%
 
 
 
__________
(1) 
Risk in force is generally the maximum potential loss recovery under the applicable mortgage insurance policies in force and is based on the loan level insurance coverage percentage and, if applicable, any aggregate pool loss limit, as specified in the policy. 
(2) 
Insurance in force represents the unpaid principal balance of single-family loans in our guaranty book of business covered under the applicable mortgage insurance policies.
(3) 
Deferred payment obligation represents the percentage of cash payments on policyholder claims being deferred as directed by the insurer’s respective regulator in the state of domicile as of May 7, 2015.
(4) 
Insurance coverage amounts provided for each counterparty may include coverage provided by consolidated affiliates and subsidiaries of the counterparty.
(5) 
“Approved” mortgage insurers are counterparties approved to write new insurance with us. “Not approved” mortgage insurers are counterparties that are no longer approved to write new insurance with us.
(6) 
These mortgage insurers are under various forms of supervised control by their state regulators and are in run-off.
(7) 
Effective April 10, 2015, PMI increased its cash payments on policyholder claims from 67% to 70%, and subsequently paid sufficient amounts of its outstanding deferred payment obligations to bring payment on those claims to 70%. It is uncertain whether PMI will be permitted in the future to pay any remaining deferred policyholder claims or increase or decrease the amount of cash they pay on claims.
(8) 
Effective July 1, 2014, the terms of RMIC’s order regarding its deferred payment arrangements changed to no longer defer payments on policyholder claims and to increase its cash payments to 100%. In addition, RMIC paid us amounts equivalent to its outstanding deferred payment obligations to bring payment on our claims to 100%.
On April 17, 2015, Fannie Mae published updated eligibility standards for approved private mortgage insurers, pursuant to a directive issued by FHFA to both Fannie Mae and Freddie Mac. The new standards, effective immediately for new applicants and on December 31, 2015 for existing approved insurers, include enhanced financial requirements, including risk-based and minimum asset standards and are designed to ensure that mortgage insurers have sufficient liquid assets to pay all claims

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