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The Government National Mortgage Association is once again considering a private/public risk sharing arrangement on certain high loan-to-value ratio mortgages, industry officials said last week.
The GNMA "Choice" concept, as it is known, would cover residential loans where the LTVs are between 90% and 97%.
The mortgages, which would carry both government insurance and private mortgage insurance (PMI), would then be securitized.
In written remarks to Congress, new Housing and Urban Development secretary Mel Martinez noted that he will continue discussions, "with the private sector to develop single-family risk sharing approaches that benefit the ...
Source: HighBeam Research, GNMA Has Interest in Risk Sharing.(Brief Article)