The nation’s mortgage insurers are raising red flags about a new enterprise-paid mortgage insurance product at the Federal National Mortgage Association.

On Tuesday, Fannie Mae issued a notice about the enterprise-paid option, which it says satisfies its charter requirement for mortgages with high loan-to-value ratios.

The secondary mortgage lender said the additional option is being offered as an alternative to borrower-paid and lender-paid mortgage insurance.

Source: Mortgage Daily