February 20, 2026 Letter: Improving Housing Affordability Through Bank Capital Modernization

February 20, 2026

On February 20, USMI joined a coalition of housing and banking industry stakeholders in sending a letter to banking regulators in support of efforts to modernize bank capital standards to strengthen financial stability and housing affordability. The groups wrote that a revised Basel III Endgame rule should support the critical role that private mortgage insurance (MI) plays in reducing risk for taxpayers while preserving and enhancing mortgage finance options for homebuyers. This includes providing loan-level capital relief commensurate with the level of private MI coverage and adjusting the Eligible Guarantor definition to include private mortgage insurers. USMI and its fellow signatories stand ready to serve as resources to regulators to assist in their bank capital modernization efforts. Click here to read the full letter.