Mortgage insurance companies are getting a long-awaited shot at expanding their business with Fannie Mae and Freddie Mac. But it's shaping up to be less lucrative than they had hoped.

Freddie Mac on Monday plans to say it will start a pilot program to increase the amount of risk it shares with private mortgage insurers. The program will apply to loans meeting certain criteria and acquired by the mortgage giant from Sept. 1 through Feb. 28. Freddie Mac estimates it will transfer more than $100 million of backing to the private insurers, on almost $4 billion of loans.

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