Although lenders are opposing Freddie Mac's recent decision to increase mortgage insurance coverage requirements, the new mandates may also provide it with the ability to provide more programs that until recently may have been too risky.

Freddie's new standards, which are outlined in its Sept. 15 Bulletin, No. 94-11, will require its sellers to ensure mortgage insurance for originations with loan-to-value ratios greater than 90% be set at 30%, up from previous Solo requirement. Loans with LTVs greater than 85% but less than or equal to 90% will require 25% coverage, and mortgages with LTVs greater than 80% but less than or equal to 85% will remain at 12%.

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