Mortgage Insurance companies have this industry by the neck and are squeezing ever so slightly daily.  In  a recent memo from one of the AE’s I work with, she stated that mortgage companies are no longer going to be offering BPMI (borrower paid mortgage insurance) for conventional loans greater than 90% LTV in the following states, Arizona, California, Florida and Nevada. 

This comes from a bank who is usually the first to act on the new guidelines and it has me worried.  I have been trying to help people get out of their adjustable loans for the past 6 months, and with the value of their homes decreasing so rapidly, LTV’s are getting high.

I do know that the government programs, such as FHA are very good with high LTV’s, but they take forever and there is so much work to get these done.  I am wondering if these mortgage insurance companies are going to a bit of an extreme with this, not providing mortgage insurance is not going to help at the end of the day.  These people who can’t qualify for a loan due to their high LTV’s are going to lose their home.  Which in turn means more foreclosures, and more economic trouble for this already scraping for anything economy.