PMI Insurers May Owe Thanks To Piggy-Back Mortgages

RE:PMI Insurers May Owe Thanks To Piggy-Back Mortgages

Joseph — Thu, 10 Jan 2008 13:00:00 GMT

Your hypothesis that "PMI companies dodged a Bullet" is a little flawed. First, one would have to eschew that the PMI companies would have accepted those borrower's with HIGH LTV loans. Secondly, all the MI companies have a level of tolerance for LOW/NO Doc business which would have curtailed any one investor distributing their portfolio of those products to one MI company. Finally, give the MI company underwriter some credit. Just because a borrower has a credit score does not equate to "open the floodgates" with an approval! It would appear that the path of least resistance was chosen, along with a little greed from the profiting from the transaction. Whether that was the borrower, loan officer, broker, investor or investment banker. In the end, just look at HR 3468 to see who gets "bailed out" of their own mess on the back of everyone else who didn't buy into the "easy way" out.

RE:PMI Insurers May Owe Thanks To Piggy-Back Mortgages

Thomas Johnson — Thu, 15 Nov 2007 13:00:00 GMT

The second lienholders were the piggies in the piggyback loans. Loaded with teaser rates, super high reset rates and prepay penalties, when the house goes to foreclosure, they get wiped out. Most of these 2nd lien servicers haven't even figured out that they need loan workout people on staff right now, so that in a short sale, maybe they can recover a nickel or a dime on the dollar for the investors.

RE:PMI Insurers May Owe Thanks To Piggy-Back Mortgages

DaLoanShark — Tue, 13 Nov 2007 13:00:00 GMT

If the conclusions drawn at the end of the article prove true, this would be the time to pressure Congress to make permanent the tax deductability of PMI. That would sure help the home buyer, lender and would harm PMI sales either. Maybe we should by some stock.

RE:PMI Insurers May Owe Thanks To Piggy-Back Mortgages

Ted — Tue, 13 Nov 2007 13:00:00 GMT

Fighting Mortgage Servicing Fruad from this site/forum. http://www.msfraud.org/forum.htm I have a question? Quote> On the other hand, how much worse might it have been had borrowers not gotten so creative with their financing?