Freddie Mac's recent decision to deepen mortgage insurance coverage requirements for high loan-to-value loans will mean higher closing costs for home buyers. But while Freddie maintains the added costs will be minimal, some lenders are nonetheless leery about how it will affect business, which is already down substantially. Freddie will require the following levels of insurance coverage,

High Loan-to-value Mortgages: * LTVs Between 80% and 85%: Mortgage insurance coverage will remain at 12%. Coverage for insurance guaranteed by Amerin Guaranty Corporation will be 14%. * LTVs Between 85% and 90%. Required coverage increases to 25%. Coverage for fixed-rate products guaranteed by Amerin will be BOY.@ for all other products, Amerin coverage will be 31%. * LTVs 90% and Above. Required coverage increases to 30%; Amerin coverage will be 36%. 15- and 20-year Mortgages. * LTVs Between 85% and 90%: Mortgage insurance coverage will be reduced to 6%. Coverage for insurance guaranteed by Amerin will be reduced to 8%. * LTVs Between 85% and 90%: Required coverage will be reduced to 12%. Amerin coverage will drop to 14%. * LTVs 90% and Above: Required coverage will remain at 25%; Amerin coverage remains at 29%.

Effective Dates.

For 15- and 20-year fixed rate mortgages, the new requirements are effective for mortgages delivered to Freddie Mac on or after Oct. 1, 1994. For all other mort-gages, the changes are effective for mortgages which. * Have a note date on or after Jan. 1 1995. * Are delivered under a new commitment or contract dated after Oct. 15, 1994.

The following mortgages do not require the increased mortgage insurance coverage announced in Bulletin 94-11, but must meet Freddie's current mortgage insurance requirements as set forth in Guide Section 27.1: * Mortgages with a note date before Jan. 1, 1995, even if the mortgage is modified after that date. * Converted mortgages, if the original adjustable-rate mortgage was closed before Jan. 1, 1995. * Mortgages delivered under a commitment or contract dated before Oct. 15, 1994.

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