Private mortgage insurance (PMI) helped a record-high two million low-downpayment borrowers secure mortgage financing in 2020, a 53% jump from 2019, Housing Wire reports. It’s generally required if you’re unable to make a minimum down payment of 20% and ranges between 0.5%-2% of the loan total. Fortunately, however, you’re not locked into paying PMI (which can be hundreds of dollars each month) for the entire life of your loan and have several options for getting rid of it. Wait for automatic cancellation Under the Homeowners Protection Act, PMI should automatically…
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PMI Group shares plummet following capital requirement misses
PMI Group Inc. shares dropped by up to 41 percent on August 22st, following an announcement that two of the units of this mortgage insurance company were forced to stop writing new business because they had fallen short of meeting their capital requirements. Just before this announcement was made, PMI had stated that both PMI Mortgage Insurance Co. (MIC) and PMI Insurance Co. had been placed under regulatory supervision by the Arizona Department of Insurance. Since then, PMI has also revealed that the MIC subsidiary, PMI Mortgage Assurance Co., was…
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