Private MIs Fear Lenders Would Seek ‘Concessions’ Under GMP
August 11, 2003
Private mortgage insurers continue to seek a break from the Department of Housing and Urban Development’s proposed RESPA reform rule, fearing that the RESPA safe harbor for packagers would cut drastically into the MIs’ bottom lines. The MI industry has expressed concern that lenders offering guaranteed mortgage packages would try to use GMPs as leverage to obtain steeper volume discounts in exchange for business referrals.