Real Estate Central

MCLEAN, Va., July 1 /PRNewswire/ — Republic Mortgage Insurance Company
(RMIC), a Freddie Mac-approved mortgage insurer, has notified Freddie Mac
that it was downgraded by Moody’s Investor Services to A1 from Aa3, below
the credit rating required to maintain Type I Insurer status under Freddie
Mac’s Private Mortgage Insurer Eligibility Requirements.

Under Freddie Mac policies announced on February 13, 2008, RMIC’s
eligibility status will not automatically change from a Type I to a Type II
Insurer. Instead, RMIC has committed to send Freddie Mac a complete
remediation plan for returning to an Aa3 rating within 60 days from the
date of its downgrade.

Freddie Mac will then determine, at its sole discretion, whether or not
to impose additional requirements and the nature of those requirements.
Freddie Mac will notify RMIC of its determination in writing.

Both Type I Insurers and Type II Insurers are eligible to insure loans
that Freddie Mac already owns as well as loans to be sold to Freddie Mac.
Private mortgage insurance enables Freddie Mac to buy mortgages when the
borrower makes a downpayment of less than 20 percent of the purchase price.

Freddie Mac is a stockholder-owned corporation established by Congress
in 1970 to support homeownership and rental housing. Freddie Mac purchases
single-family and multifamily residential mortgages and mortgage-related
securities, which it finances primarily by issuing mortgage-related
securities and debt instruments in the capital markets. Over the years,
Freddie Mac has made home possible more than 50 million times, ensuring
financing for one in six homebuyers and more than four million renters.

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[Via Real Estate Newswire]