Richard's Real Estate Thoughts - Chattanooga TN Mortgage Lender: December 2009

More on the mortgage insurance industry

MGIC is the defendant in a suit by Bank of America lending units for denying claims. This follows a prediction earlier this month by Moody' that mortgage insurance companies might start rejecting claims on defaulted loans - to the tune of an anticipated $4 billion.

The big push is to hold the lenders more accountable for the lending decision - and of course to keep the MI companies viable.

FHA is changing fast - appraiser independence, 5% downpayment, tighter streamline refinance standards, higher credit score standards, higher mortgage insurance premiums.

As the FHA market share increases, largely from the loss of competitive conventional programs, loan approvals will become more difficult.

The mortgage insurance industry may need help to rebound. Right now it appears that they are going to fight by withholding payment of many default claims.

The housing recovery needs a strong mortgage insurance industry, but it also needs mortgage insurance that actually pays on defaulted loans.

At any rate, conventional mortgage insurance remains a major aspect of the housing market that has not received needed attention.

See my previous post on this issue.

Here is a S&P report downgrading 5 mortgage insurance companies: Old Republic, PMI, MGIC, Radian, and Genworth.

Richard Smith
NMLS 184479

Cell:
423-280-0345
Toll Free: 888-474-9920
Office: 423-899-6898

American Acceptance Mortgage, Inc
NMLS 132505, TN/GA Licensee

Email: rsmith@aamonline.com

FHA, VA, Rural Development, Conventional, Jumbo,
Reverse Mortgages, FHA 203k Renovation


Home financing in Tennessee and Georgia.

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Richard Smith
NMLS# 184479 TN# 104002 GA# 28928 

Conventional, FHA, FHA 203k, HUD $100 down purchases, VA,

Rural Development ( USDA), and Jumbo Loans


Lending in Chattanooga, Tennessee and Georgia for over 20 years.

Sierra Pacific Mortgage

Cell phone: 423-280-0345 Email: Richard.Smith@SPM1.com

Visit my website to inquiry about a home loan.

Read my most recent articles in Scotsman Guide.

This blog represents the opinions of Richard Smith. The posts and comments written on the blog do not represent the opinions or positions of Sierra Pacific Mortgage. 

Comment balloon 0 commentsRichard Smith • December 23 2009 01:26PM
More on the mortgage insurance industry
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MGIC is the defendant in a suit by Bank of America lending units for denying claims. This follows a prediction earlier this month by Moody' that mortgage insurance companies might start rejecting claims on defaulted loans - to the tune of an… more
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