For conventional loans under a whole loan program, all program loans must be insured under a primary policy of private mortgage insurance issued by a private mortgage insurer whose ability to pay claims is rated by a nationally recognized rating service or agency with a rating equivalent to or better than the rating required by Resolution of the Board of Directors of the Corporation or by Program Documents, whichever is higher, and which will write a policy or private mortgage insurance on a form prescribed by the Corporation and approved by the Insurance Commissioner and at rates to be negotiated. Once the loan-to-value ratio reaches 78% of the original loan amount, the private mortgage insurance premium will be dropped in accordance with the Homeowner’s Protection Act of 1998.
Rulemaking Authority Florida Statutes § 420.507(12). Law Implemented 420.502, 420.507, 420.508 FS. History-New 12-16-03.