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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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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