Consumer advocacy groups including the Center for Responsible Lending and the National Consumer Law Center jointly issued a statement calling the FHFA's decision a "giveaway" that "harms nearly everyone while preserving unfair practices."
Not everyone lost. The day after the FHFA's Monday conference call the share price of the leading force-placed insurer, Assurant, surged 6.7%, adding roughly $200 million to its market value.
"Fannie Mae … held significant power to change the pricing in the market," Compass Point Research analyst Kevin Barker wrote that morning. "We still expect pressure on force-placed insurance premiums... but this is a decisive positive for force-placed insurance."