Ar_home_b_search
 

OK, NOW THAT THE FEDERAL GOVERNMENT IS BACKING JUST ABOUT EVERY MORTGAGE LOAN PRODUCT KNOW TO MAN WHY IS IT THAT MY CLIENTS STILL NEED TO PAY FOR AN ADDITIONAL INSURANCE AGAINST DEFAULT?

The Federal Government is now guaranteeing the performance of Fannie & Freddie... If borrowers default, thats ok. The originating lender, servicing lender, or purchaser of that debt will not lose a thing because Uncle Sam's hand is firmly in place to help steady the imbalance.

So, why do our clients all have to pay an additional premium to a company that is essentially doing nothing. It like the loans are now doubly insured!!

Of course I imagine that the PMI companies will help the government recoup some of their loss... But ultimately it is our tax money insuring these loans.

 
This post has been included in New York Real Estate News Clinton County, NY Real Estate News Plattsburgh, NY Real Estate News
Post is included in group: All About Mortgages/Mortgage Networking
Post is included in group: Clinton County Real Estate
Post is included in group: Mortgages
Post is included in group: True Mortgage Professionals

4 Comments on Why PMI?!

SEP
18
2008
Outside Blog Attended Rain Camp

Christopher - good question and just one more oddity in our industry. I think it is safe to assume when there is PMI that the MI company will be required to pay the claim since they've been collecting on it.  The government backing is still there, so yes it technically is double-insured.
9:36pm • #1
SEP
19
2008
1 Featured Post Outside Blog

Todd - It makes sense to some degree... The government will recoup some of their loss on defaulted mortgages... But the lender is completely insulated in any way from any sort of risk. the government backs the mortgage and the PMI backs the government...
9:12am • #2
NOV
20
2008

I liked your blog and articles... I'm starting a sub referral group at realestateloans dot com within a few weeks... please consider joining me. mike mike.realestateloans.com
mike
2:56pm • #3
NOV
30
2008
348,045 Points 1 Featured Post

Thanks for the great advice. I will check back often. I really like the blog. I am new at blogging but I am beginning to learn quite a bit from reading blogs like the ones I find on Active Rain. If I can ever be of help just let me know.  

                                                                 Thanks, Terry

                                                                  Of "Now What?"
10:01am • #4

What does the graphic say?

Leave a response…

(optional)
What does the graphic say?
 

Christopher Ohlsen

Malone, NY

More about me…

Adirondack Country Homes Realty

Cell Phone: (518) 335-8791

Email Me



Links

Archives

RSS 2.0 Feed for this blog

Find NY real estate agents and Malone real estate on ActiveRain.