New Report Shows Importance of Private Mortgage Insurance in Helping Low Down Payment Borrowers Qualify for Mortgages in All 50 States
"Private mortgage insurance has helped millions of first-time and middle-income homebuyers across
The report looks at how MI helps bridge the down payment gap that affects many borrowers and analyzes at a state level who specifically benefits from MI. The report presents data that highlights:
- The number of years it takes to save a 20 percent down payment in all 50 states plus the
District of Columbia - The total number of homeowners helped by MI in 2017 broken down by state—and key lending characteristics including average home price and credit scores of borrowers with MI
- The number of minority borrowers who have obtained or refinanced mortgages broken down by state
Since 1957, MI has helped more than 30 million families qualify for a mortgage by bridging the gap between the down payment and home financing. In 2017 alone, MI helped more than one million borrowers purchase or refinance a mortgage; of that total number of borrowers, 56 percent were first-time homebuyers and more than 40 percent had annual incomes below
Texas : 79,030 borrowers (55 percent first-time homebuyers)California : 72,938 borrowers (66 percent first-time homebuyers)Florida : 69,827 borrowers (58 percent first-time homebuyers)Illinois : 47,866 borrowers (63 percent first-time homebuyers)Michigan : 41,810 borrowers (57 percent first-time homebuyers)
The report also focuses on how MI reduces taxpayers' exposure to mortgage credit risk and protects the federal government from that risk. MI serves as credit protection against mortgage credit risk in the event of a borrower defaulting on his or her mortgage, meaning every dollar that an MI company covers when a borrower defaults on his or her mortgage is a dollar that the GSEs and taxpayers do not have to pay. In fact, since the 2008 financial crisis the MI industry has paid over
"Coming out of the financial crisis, the MI industry is even stronger with more robust underwriting standards, stronger capital positions, and improved risk management. The MI industry follows a strict set of requirements to insure mortgages acquired by the GSEs, which are known as Private Mortgage Insurer Eligibility Requirements, and has implemented Master Policy Agreements to bring more efficiency and greater transparency to payment of claims," added Johnson. "MI has played a critical role in protecting taxpayers and the federal government from undue mortgage credit risk for six decades, and will continue to provide this important function in the housing finance system moving forward."
The complete report on MI in the
View original content:http://www.prnewswire.com/news-releases/new-report-shows-importance-of-private-mortgage-insurance-in-helping-low-down-payment-borrowers-qualify-for-mortgages-in-all-50-states-300661611.html
SOURCE
Zurich Insurance Group Invests in Insurance Tech Startup CoverWallet to Fuel International Growth
A.M. Best Affirms Credit Ratings of Samsung Fire & Marine Insurance Company of Europe, Limited
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News