WASHINGTON - The American Property Casualty Insurance Association (APCIA) issued the following statement commending the Federal Housing Finance Agency (FHFA), Fannie Mae and Freddie Mac for updating property insurance requirements in a way that will help lower costs for homeowners and homebuyers. The following statement may be attributed to Karen Collins, APCIA's vice president of property and environmental:

"These changes are an important step toward lowering homeownership costs and removing unnecessary barriers for homeowners and homebuyers. By rolling back unworkable insurance requirements, FHFA, Fannie Mae, and Freddie Mac have taken a commonsense approach that better reflects today's insurance markets while maintaining appropriate consumer protections.

"We appreciate FHFA's willingness - along with Fannie Mae and Freddie Mac - to engage directly with insurers and other stakeholders to better understand the real-world impacts of the February 2024 guidance. That engagement was critical in recognizing how certain requirements were contributing to higher costs, reduced coverage availability, and unintended challenges for condominiums and other properties.

"At a time when families are struggling with rising living costs and housing affordability challenges, policies grounded in real-world market conditions can make a meaningful difference. APCIA believes this approach - paired with stronger building codes, improved mitigation, and efforts to reduce litigation-driven costs - are essential to improving insurance availability and affordability over the long term. We look forward to continued collaboration with FHFA, Fannie Mae, and Freddie Mac, and other stakeholders to support homeowners, protect taxpayers, and promote a stable housing and insurance marketplace."

The Federal Housing Finance Agency announcement can be found here. Fannie Mae changes can be found here and Freddie Mac changes can be found here.