PMI and Subsidiaries Suspended as Approved Mortgage Insurers
August 22, 2011
Originate & Underwrite and Sell & Deliver
Effective immediately, we are suspending PMI Mortgage Insurance Co. (PMI), and its wholly-owned subsidiaries including, PMI Insurance Co. and PMI Mortgage Assurance Co. (collectively "PMI"), as approved mortgage insurers.
With this suspension, mortgages insured by PMI with note dates before May 19, 2011, or after September 16, 2011, will no longer be eligible for sale to Freddie Mac. To help manage your pipeline, mortgages insured by PMI with note dates on or after May 19, 2011, and on or before September 16, 2011, must be delivered to Freddie Mac on or before December 30, 2011, whether for borrower-paid or lender-paid insurance.
Please also note the following critical information as a result of the suspension:
- As an exception, mortgages with existing PMI certificates of insurance will continue to be eligible for sale to Freddie Mac if they are refinanced under the Freddie Mac Relief Refinance MortgagesSM offering, both Same Servicer and Open Access options, and the coverage is continued through modification of the existing mortgage insurance certificate.
- The suspension does not impact mortgages already sold to Freddie Mac that are insured by PMI.
- There are no changes to the servicing requirements for mortgages insured by PMI. Freddie Mac Servicers do not need to take action on mortgages that have already been sold to us, whether at renewal of the insurance or otherwise.
We have updated our Exhibit 10, Freddie Mac-approved Mortgage Insurers, to reflect this change. We will also be updating the Single-Family Seller/Servicer Guide to reflect this change with a future Guide Bulletin.
As always, please contact your Freddie Mac representative if you have questions or concerns.