Last week, the House Financial Services Committee’s Ranking Member, Representative Maxine Waters (D-CA), wrote to the Federal Housing Finance Agency (FHFA) and criticized the agency’s decision to stop Fannie Mae from implementing their proposal on lender-placed insurance (LPI). Representative Waters has long been a critic of LPI and its related costs. The Fannie Mae proposal was designed to reduce the cost of insurance borne by GSEs.
In her letter, Mrs. Waters asked Acting Director Ed DeMarco to explain why FHFA tabled the proposal and to disclose the stakeholders it contacted as part of its RFP process. Mrs. Waters also asked how FHFA plans to address force-placed insurance reform going forward.
Read the letter from Rep. Waters to the FHFA.