WASHINGTON, July 10 A U.S. housing regulator on
Thursday asked for public comment on proposals to tighten
requirements for private insurers that do business with
government-controlled mortgage finance firms Fannie Mae FNMA.OB
and Freddie Mac FMCC.OB.
The two firms back most mortgages in the United States, but
they also contract private firms to insure loans where the
loan-to-value ratio is above 80 percent.
This helps shield taxpayers from some losses when people
default on their mortgages.
The Federal Housing Finance Agency (FHFA) said in a
statement the proposed rules would help ensure "approved
insurers have a sufficient level of liquid assets from which to
The FHFA will take accept public commentary on the rules
until September 8.
Fannie Mae and Freddie Mac are owned by U.S. taxpayers, who
bailed out the firms in 2008 during the financial crisis. The
FHFA runs the two firms through a conservatorship.
(Reporting by Jason Lange; Editing by Meredith Mazzilli)