The Fund is authorized to enter into reinsurance and coinsurance arrangements, as approved by the Secretary. The amount of any reinsurance or co-insurance may decrease the amount of the Fund reserves pledged to the Fund pool insurance policy only if the: Fund does not retain contingent liability under the reinsurance or co-insurance arrangement; or Reinsurer or coinsurer is a: Federal agency, or Private insurer having surplus as regards policy holders equal to at least $15,000,000, which is approved by FNMA or FHLMC.