What happened to Private Mortgage Insurance (PMI)?

N

nutmeg

I haven't read or heard anything.


Lenders Mortgage Insurance (LMI), also known as Private mortgage insurance (PMI) in the US, is insurance payable to a lender or trustee for a pool of securities that may be required when taking out a mortgage loan. It is insurance to offset losses in the case where a mortgagor is not able to repay the loan and the lender is not able to recover its costs after foreclosure and sale of the mortgaged property
 
Quote from nutmeg:

I haven't read or heard anything.


Lenders Mortgage Insurance (LMI), also known as Private mortgage insurance (PMI) in the US, is insurance payable to a lender or trustee for a pool of securities that may be required when taking out a mortgage loan. It is insurance to offset losses in the case where a mortgagor is not able to repay the loan and the lender is not able to recover its costs after foreclosure and sale of the mortgaged property
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What about it? Its still around
PMI
Radian
Genworth
.....to name a few
 
with 80/20 loans people didnt need to get PMI. The people getting PMI were the ones getting FHA 97% financing. The people that got 80/20 didnt get PMI. Also the people with the good credit generally got the FHA loans and those people usually dont default as much. The 80/20 people are the guys with 500 fico scores that dont care.
 
I had to pay PMI on the first house I bought and I can assure you I didn't have a 500 credit score -- I don't know what it was because I hadn't even heard of a credit score back then but I had excellent credit. I was starting out and I didn't have 20% down. These are good programs because otherwise I would have been rejected. I paid my mortgage every month and when I built up enough equity I sold my first house and bought another one. This time around I had 40% to put down. Without PMI I would have been stuck in the apartment trap for at least a few more years.

Quote from peilthetraveler:

with 80/20 loans people didnt need to get PMI. The people getting PMI were the ones getting FHA 97% financing. The people that got 80/20 didnt get PMI. Also the people with the good credit generally got the FHA loans and those people usually dont default as much. The 80/20 people are the guys with 500 fico scores that dont care.
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Quote from peilthetraveler:

with 80/20 loans people didnt need to get PMI. The people getting PMI were the ones getting FHA 97% financing. The people that got 80/20 didnt get PMI. Also the people with the good credit generally got the FHA loans and those people usually dont default as much. The 80/20 people are the guys with 500 fico scores that dont care.
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I'm looking around and this looks like the case, subprime didn't require PMI, but Fannie and Freddie did so what happened with them?

Actually it looks like the guidlines for PMI were circumvented on 80/20 loans because they require two separate lenders but the loans were written with only one lender. Not quite sure how this was allowed to happen.

At any rate, not much in the news who got paid the PMI insurance on the gov't loans or other A paper defaults. You'd think they'd mention how well PMI worked or is PMI a big scam?
 
Quote from IanMacQuaide:

not being a smartass, but what evidence suggests they didn't , and, subsequently, are now broke?
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Perhaps some did go broke, where's the reserves, who re-insured them. If AIG was the largest insurer of PMI, why wasn't this mentioned, hmnnnn they could have been the good guys, paying out PMI claims but never heard a peep about that.
 
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