pmi: Private mortgage insurance firms changing direction - 04/28/10 10:22 AM
PMI, or private mortgage insurance, played a large role in yesterday's real estate boom, allowing buyers acquire property without putting a penny down. That was a tempting prospect indeed. 100% financing actually became quite popular those days as values kept galloping up on a steady pace that quickly generated equity no borrower in his right mind would dare turn down. The standard rule required a PMI if the down payment was less than 20%. These insurers were making money hand over fist, like just about all the other housing market participants did.
The real estate market's collapse changed everything in a … (6 comments)

pmi: Delinquent mortgage borrowers with PMI staging fragile comeback - 04/01/10 07:12 AM
Some good news are starting to sneak into the devastated real estate market from far-off directions. They may not mean all that much in the conventional big picture that usually chews over topics like foreclosures, short sales, home price drops and mortgage lender failures. Nevertheless, many small time indicators often give hints about which way the housing market is heading. One of these gems is the private mortgage insurance, or PMI, default rate.
Mortgage Insurance Companies of America, or MICA, keeps tabs on this and just released its latest report. In short, the trade group explains that 80,758 homeowners with PMIs … (6 comments)

pmi: New mortgage guidelines coming into focus - 03/16/09 05:12 PM
On the heels of the latest stimulus package, or whatever it was called this time, Fannie Mae and Freddie Mac have provided the home loan industry more details about their new requirements. Some of the guidelines are actually more borrower-friendly than what was initially believed. Eligible homeowners must have a mortgage that is either held by these agencies in their portfolio or is part of a mortgage bond guaranteed by them. The crucial element is that homeowners seeking to refinance through them have to have a solid payment record, for instance no lates during the last 12 months. 
Among the more … (10 comments)

pmi: Mortgage approval hinges on an acceptable appraisal more than ever - 03/14/09 11:43 AM
As if there already weren't enough roadblocks to qualify for a home loan. Most of the past mortgage programs have vanished into thin air in the aftermath of this still percolating real estate meltdown. Besides, down payment requirements have increased, FICO score standards are higher, PMI firms are pulling out of markets and so it goes.
Then there is the all-important appraisal. It's hard to get an accurate one when there are very few, if any, comparables in the immediate neighborhood to use. Homes are just not selling like they once were and this is the most reliable yardstick appraisers have … (6 comments)

pmi: Private mortgage insurance comeback - 05/02/07 09:52 AM
That insurance sector, the so called PMI, almost disappeared during the real estate boom days a few years ago. It wasn't really needed much then. If the borrower lacked down payment, piggyback home loans came to the rescue and life went on. Piggyback typically consists of two loans. For example, 80-15-5 setup means that there's an 80% first, 15% second and 5% down. The benefits with it were the standard tax deduction come April and financing the second, despite it posting a higher interest rate, was normally less costly than taking an PMI.
Today, however, there's a different tune playing in the … (2 comments)