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"It's going to be a very difficult challenge for companies to figure out the underwriting rules for this.
Each type of insurance can have widely varying underwriting rules, depending on where it is sold and to whom it is sold.
To make matters worse, lenders and mortgage insurers have tightened underwriting rules, typically requiring borrowers to have at least 15percentt equity in a home.
The Bush administration calls that goal unrealistic and says achieving it would require loosening underwriting rules that would put taxpayer money at too much risk.
Lenders say settling the typical mortgage on a new purchase takes about 45 days — at least two weeks longer than last year, before underwriting rules were severely tightened.
So instead it devised a complex set of underwriting rules that will make it harder for these lenders to stay in business.
Similar(39)
"The FHFA director unilaterally decides on guarantees and other fees, underwriting standards, rules relating to loan repurchase requests, rules for loan modifications including principal write-downs," Axel wrote, saying that replacing DeMarco "could be a major game changer".
Many of these healthy small groups have been able to keep the plans they had in 2013, complete with health-history underwriting, thanks to rules from the Obama administration.
The FDIC has already tightened rules on underwriting negative-amortisation loans, and the Senate has begun to hold hearings on predatory mortgage lending.
Federal banking regulators completed rules for underwriting "exotic" mortgages yesterday, a move that the biggest lenders say might stifle the use of loans that make houses more affordable.
Every aspect of health insurance — from the rules for underwriting and setting premiums to the marketing of policies — would need to be monitored stringently to prevent companies from steering all bad risks to the exchanges.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com