It has been said that mortgages with PMI insurance are generally prime loans. Although I doubt the validity of that assessment, the number of borrowers with PMI attached to their loans, and in some form of defualt, continues to rise. Borrowers who opted to carry Private Mortgage Insurance (PMI) on their homes set a record as 61,300 borrowers were at least 60 days or more on their mortgage payments. The 34.7 percent increase in defaults reflects on the inability of home owners to keep current on their loan payments.
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Category: Archives, Economic Impact, Mortgage Insurance
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President Clinton repealed the Glass-Steagall Act which had prevented the coupling of investment banking and lending. Following President Clinton, George W. Bush proved to be very pro-business, but at a high cost to the average consumer. Intelligent Americans realized consumer spending and risky lending practices would come with a very high price. The full impact was not felt by baby-boomers and those age 50 and over. Our children will pay the high price of folly for a long time.
In all phases of the mortgage industry this week your hear the mortgage blues, from the people who make the loans to the people who insure them, the news was bad — and most of them expect it to get worse. Title insurers say they could not cut costs fast enough in August and September to keep up with the plummeting market. Cut costs for us, the borrower? Not at all. For these people a slower market means less revenue, so cutting costs means layoffs. Insurance reimburses a homeowner or a lender if there is an error in the deed transferring property.
Category: Archives, Mortgage Insurance, Title Insurance
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