Key insights
- Fannie Mae and Freddie Mac are loosening homeowners insurance requirements to lower homeownership costs. They will now accept mortgages with insurance covering only the current roof value, not full replacement cost. This may modestly support housing demand by reducing upfront costs, but also signals rising insurance pressures within the housing market.
Mortgage giants Fannie Mae and Freddie Mac are loosening homeowners insurance requirements in an effort to lower one of the "hidden costs" of homeownership.
The Federal Housing Finance Agency, which regulates Fannie and Freddie, said the mortgage giants would now accept mortgages from homeowners with a leaner type of insurance that covers only the current value of a roof, rather than its full replacement cost.