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Wednesday, December 8, 2010

Mortgage insurance doubles in 6 months

PMI is really increasing.  What happens is FHA (it's 40% of the market) goes under and now the only way to get a loan is through private mortgage insurance.  Now you have to factor mortgage costs, property taxes, homeowners insurance, AND PMI into your monthly payment.
Mortgage Guaranty Insurance Corp. (MTG: 9.55 +5.52%) wrote $1.4 billion of new primary mortgage insurance in November, nearly double the $800 million written in May.
The fall of the housing market greatly damaged the private mortgage insurance industry, putting many out of business and pushing some to the brink. In the third quarter of 2009, the company reported $517.8 million in losses. In the first nine months of 2009, the company lost more than $1 billion.
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1 comment:

  1. Hi,

    Mortgage insurance is a great tool for both the borrower and the mortgage lender. The insurance provides protection to the mortgage lender in case the borrower defaults on the mortgage. Thanks a lot...

    Mortgage Buyers

    ReplyDelete