Replies to post #742650 on Fannie Mae-No Politics (FNMA)

[navycmdr]

Fannie and Freddie Weigh In on Florida Property Insurance Mess

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Hurricane Ian, which crashed into southwest Florida in late September, left a trail of destruction stretching across the state. It also left a $70 billion bill that could bankrupt Florida’s already precarious property insurance providers.

In response, the state legislature and the Florida Office of Insurance Regulation are scrambling to deal with the insolvencies of a growing list of insurers doing business in the state and the expected exodus of many others. Recently, the state Senate passed a bill that would create a $1 billion temporary reinsurance fund that will be run through the Citizens Property Insurance Corp., Florida’s state-run property insurer of last resort.

The so-called Temporary Market Stabilization Agreement is intended to bolster the state’s property insurance system, but has created widespread confusion for lenders, including Fannie Mae and Freddie Mac sellers. Both enterprises are now offering their origination counterparties guidance on how to deal with Florida’s insurance crisis.