Mortgage Insurance
By Krista Franks Brock | 03/19/2012
Lenders now have an easy way to check mortgage insurance rates with the nation's largest private mortgage insurer, Mortgage Guaranty Insurance Corporation (MGIC). Teaming up with Mortech, Inc., a technology provider for the mortgage industry, MGIC enables lenders to check rates through its new web-based offering, MarksmanLMP. Lenders can review general rate quotes and incorporate adjustments based on specific loan qualities, ultimately leading to "a faster loan closing process and increased profitability," according to a press release from MGIC.
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By Carrie Bay | 02/28/2012
The Federal Housing Administration (FHA) has seen its capital reserves quickly dissipate over the past few years amid a growing number of mortgage defaults and payouts on insurance claims. In an effort to bolster its capital cushion, the federal agency has announced a new premium structure for FHA-insured single-family mortgage loans. FHA will increase its annual mortgage insurance premium by 0.10 percent for loans under $625,500 and by 0.35 percent for loans above that amount. Upfront premiums will also increase by 0.75 percent.
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By Ed Delgado | 01/20/2012
The Federal Housing Administration (FHA) has announced new measures to strengthen standards for the lenders it works with - measures the agency says will help it better manage the risk that comes with insuring mortgages against default. The new regulations raise the bar in terms of lender performance when it comes to seriously delinquent and claim rates, and shores up the agency's processes for requiring lenders to cover losses from insurance claims paid on mortgages that involve fraud or don't meet FHA's underwriting guidelines.
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By Krista Franks | 01/12/2012
A group convened on the steps of the South Carolina State House Thursday to express their support of homeownership and opposition to policy changes that might threaten the American Dream. The outlook expressed at the rally mirrors widespread sentiment uncovered in a recent industry survey. About three-fourths of American voters said it is "appropriate and reasonable" for the federal government to promote homeownership through tax incentives.
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By Carrie Bay | 11/23/2011
The PMI Group, Inc. says it has filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code. According to PMI, the move is a direct result of the seizure of its subsidiaries PMI Mortgage Insurance Co. and PMI Insurance Co. by the Arizona Department of Insurance on October 20, 2011. PMI sought to overturn the regulator's seizure of its mortgage insurance operations, but that motion was denied on Friday.
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By Carrie Bay | 11/15/2011
An annual audit of the Federal Housing Administration's (FHA) books has concluded there is a 50-50 chance the government mortgage insurer will need a bailout from taxpayers within the next 12 months. The agency's cash reserves have been cut almost in half over the past year and its capital reserve ratio has plunged to 0.24 percent. The minimum legal limit mandated by Congress is 2 percent. News of the agency's deteriorating bottom line comes just as lawmakers are advancing a bill that would likely increase FHA's market share.
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By Carrie Bay | 11/10/2011
Mortgage insurer Radian Guaranty Inc. trimmed its inventory of delinquent loans during the month of October by 136, as new delinquencies and cures came close to breaking even. The company ended the month with 110,614 loans in its primary delinquent portfolio, down from 110,740 at the beginning of October. The company says it wrote $2.07 billion in new primary mortgage insurance coverage during the month of October.
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By Krista Franks Brock | 10/28/2011
More than 42 percent of prospective home buyers believe home values increase by about 7 percent each year, according to a recent survey by Zillow. This estimation is out of line for the current economic times and high even for years prior to the housing crisis. In a normal market, home values tend to increase by only 2 percent to 5 percent per year, according to Zillow. While home buyers revealed a lack of understanding of home values, respondents answered about 65 percent of questions correctly.
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By Krista Franks Brock | 10/24/2011
PMI Mortgage Insurance Co. (PMI) and PMI Insurance Co. (PIC) have been taken into conservatorship by the Arizona Department of Insurance. PMI announced on its website that there will not be a moratorium on claim payments. However, under order by the Arizona regulator, PMI will be fulfilling only 50 percent of claims, with the remaining amount deferred as a policy holder claim. The action occurs after an August announcement that the regulator was prohibiting the company from writing new policies.
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By Carrie Bay | 10/20/2011
President Obama on Thursday announced his intent to nominate Carol J. Galante to lead the federal agency that insures mortgages against default. If confirmed, Galante would take on the role of assistant HUD secretary and commissioner of the Federal Housing Administration (FHA). Galante stepped up as acting FHA commissioner in April, when David Stevens vacated the post to take the head spot at the Mortgage Bankers Association.
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