The recent adjustment in private mortgage insurance pricing could potentially draw high-quality borrowers away from FHA, leaving the agency with a disproportionate share of higher-risk borrowers, according to new research from the Urban Institute. The private MI premium cuts likely will increase the government-sponsored enterprises’ share of low-downpayment, high-credit borrowers, wrote authors Laurie Goodman, director of UI’s Housing Finance Policy Center, and fellow researcher Bing Bai. Announced by individual major private MI companies, the reductions would…
New primary mortgage-insurance activity was down slightly during the first quarter of 2016, with private MIs seeing the biggest slump in new business, according to a new analysis and ranking by Inside Mortgage Finance. A total of $144.11 billion of home loans were originated with some form of MI coverage during the first three months of this year, a 3.7 percent decline from the fourth quarter of 2015… [Includes four charts]
In general, private mortgages are extended by the owner of the property to a borrower through a private contract. Terms can vary greatly from deal to deal.
Perhaps, the time is drawing near to once again raise the thorny issue of whether the Department of Housing and Urban Development should cut FHA premiums...
Mortgage officials tracking the case note that almost a year ago Quicken raised $1.25 billion through a debt sale, money that can be employed for legal help as it fights the DOJ case.
Recent studies suggest reduced pricing and declining costs have given conventional mortgages with private MI an edge over FHA in the battle for high-quality borrowers...
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