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Home » Store » News » Latest Premium Cuts Make Loans with Private MI More Attractive to Some Borrowers than FHA Loans, Says UI

Latest Premium Cuts Make Loans with Private MI More Attractive to Some Borrowers than FHA Loans, Says UI

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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…
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