Freddie Mac-approved mortgage insurer Republic Mortgage Insurance Co. (RMIC) has been downgraded by Moody’s Investor Services to 'A1' from 'Aa3'.

RMIC has 60 days to submit a remediation plan to restore its 'Aa3' rating, according to a Freddie Mac release dated Tuesday.

The 'A1' rating put RMIC below the credit rating required to maintain type1 insurer status under Freddie Mac’s private mortgage insurer eligibility requirements. Based on the corporation’s Feb. 13p olicies, RMIC’s eligibility status will not automatically change from a type I to type II insurer, but will allow the remediation plan.

Upon completion of the plan, Freddie Mac will determine to what degree, if any, additional requirements should be imposed.

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