FNMA PROPOSAL ON MORTGAGE COULD SAVE FANNIE 500 MILLION PLUS ANNUALLY
annie Mae's proposed system would require bigger banks to use insurers from the pool currently established by Fannie Mae and led by Zurich. A number of these insurers currently offer premiums that are 30%-40% less than the current rates being charged by Assurant and QBE. If such measures are approved by the FHFA the impact on the company's earnings could be significant as expenses associated with "forced policies" would be reduced. In terms of its cost-cutting efforts and for the nine months ending September 30, 2012 vs. the nine months ending September 30th 2011 Fannie Mae has managed to reduce its overall expenses by 13.69% ($2.715 billion in 2012 vs. 3.146 billion in 2011). A further reduction in expenses could occur if Fannie Mae is granted the approval for use of its pre-established pool of insurers.