Mortgage insurance risk advice offered by Canadian watchdog

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The financial regulator in Canada has come up with a guideline draft for mitigating insurers risks. Canada’s financial regulator has now come up with a draft for certain mortgage insurance company guidelines that could help to decrease the risk that is currently present within the housing market. Analysts have cautioned that it could make it slightly harder for borrowers to obtain a home loan. The guidelines were created by the Office of the Superintendent of Financial Institutions (OSFI), and they would apply to that country’s three major mortgage insurance companies:…

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FHA mortgage insurance increases but likely won’t affect the housing market

Mortgage insurance on the rise but will it effect the market? Beginning on April 10, 2012, insurance rates for the federal housing administration (FHA) mortgages have increased from 1 percent to 1.75 percent, which will lead to a slight increase in the amount that home buyers will be paying. This is the fourth FHA borrowers’ increase in the last three years. The change was created to bring in more than a billion dollars to the federal government by September of this year. This will cause some impact on the actual…

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Home refinancing to see lower mortgage insurance premiums from the Federal Housing Administration

The Federal Housing Administration (FHA) has announced that it will be lowering the premiums for mortgage insurance for individuals who are refinancing their loans due to the housing market improvement strategy by President Barack Obama. The FHA has stated that it will be reducing the up-front premiums to bring them down from their former position at 1 percent, to 0.01 percent. This was indicated in a fact sheet that the Obama Administration began distributing on Tuesday. According to that same fact sheet, there will also be a reduction in the…

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Regulators seize control of Arizona’s PMI mortgage insurance branch

Arizona insurance regulators have seized control of a subsidiary of PMI Group, an international private mortgage insurance company. The seizure comes as the latest development in the ongoing struggle between regulatory authorities and the insurers involved in the 2008 mortgage crisis, which was a major factor in the recent economic recession. According to the Arizona Superior Court, regulators have full control of the company and will begin refunding 50% of claims beginning this week. PMI is the second mortgage insurer to be subject to such action in the U.S. When…

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Federal Housing Finance Agency reveals strategy to boost business

The Paragon Report has now been released, providing an analysis of the opportunities for investment in the property and casualty insurance industry as well as MGIC Investment Corporation and Radian Group , Inc. equity research. Earlier in September, the acting director of the Federal Housing Finance Agency (FHFA), Edward DeMarco, gave a number of different explanations of the ways in which there would be changes to the conservatorship of the Government Sponsored Enterprises (GSEs). Some of those changes included a new method for decreasing the exposure to long-term risk by…

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U.S. mortgage insurance on the brink of collapse, changes for the housing market loom

The U.S. mortgage insurance market is on the cusp of a major revolution, but not for the better. The problems stem from the 2008 worldwide economic recession. The recession took a massive toll on the U.S. housing market, resulting in a crisis that persists to this day. Several insurance companies that specialized in mortgages floundered in the wake of the recession and those that survived now hold too much risk to continue writing policies. Insurers lost billions as a result of the housing crisis, losing much of the surplus capital…

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