Fannie Mae is seeking to save hundreds of millions of dollars in force-placed insurance premiums by lining up alternatives to the dominant carriers in the specialty insurance market, according to people familiar with its effort.

The largest of the government sponsored enterprises has submitted the as yet unannounced plan to its overseer, the Federal Housing Finance Agency, sources say. Fannie is seeking to require banks and other mortgage servicers to replace existing force-placed policies on loans it guarantees with insurance provided by a consortium of carriers offering 30 percent to 40 percent discounts.

Register or login for access to this item and much more

All Digital Insurance content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access