Fannie Mae Pushes Force-Placed Insurance Reform
Insurance Networking News, November 19, 2012
Even taking into account Sandy's actuarial effects, the insurers that Fannie has lined up remain committed to writing business at the discounted rates, sources say. But because of increased reinsurance costs, the rates negotiated before the hurricane could rise if the FHFA's deliberations drag into next year, they add.
"The reality of having a catastrophic event in the middle of this is that to delay is to say 'no,'" a source says.
American Banker was unable to independently confirm that the rates would be conditional, although the Consumer Federation of America's Hunter said that the logic behind the concern seemed credible.
"January 1 is a big deal because that's when reinsurance treaty arrangements get finalized," he says.
This story originally appeared at American Banker.
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