FHFA plans to block certain practices between insurance companies and mortgage lenders that involve forced insurance coverage on homes which carry a Fannie Mae or Freddie Mac insured mortgage. In certain cases, insurance companies offer financial incentives to lenders that may result in homeowners being forced into more expensive homeowner's insurance with less costly alternatives ignored. If carried out, this change in FHFA policy could result in considerable savings for many homeowners since about half of all home mortgages are insured by Fannie Mae or Freddie Mac.
