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%.

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