PMI insures the top 20-30 percent of mortgages. They are hurting badly right now and some are out of business. However, most subprime mortgages did not carry PMI insurance because they were self insured. Remember, with all the hubbub over foreclosures, only 4% of loans are in default.
In the great depression over 20% of home mortgages were in default.
I spent years in the mortgage industry. If you have any other questions, or if this did not make sense, ask me.
Thanks for the insight.
How did these subprimes get around the PMI requirement? Or is that a state by state requirement?
>>In the great depression over 20% of home mortgages were in default.<<
At what specific time during the great depression was that true? What percentage of homes even had a mortgage then compared to now?
Where, in this great depression are we relative to the one in the 1930’s? If we are at the very beginning, would not the mortgage statistic naturally be lower right now?
What is an 80/20 loan? Thanks!
I think the question was where is the money that many did pay in? Forty years ago my loan did have PMI and we paid it. Where is all that?
Any idea about VA loans? More defaults than before? Is whatever fund they have in trouble?
Not that that last is a problem with us tax monkeys on the string but I thought I’d ask.
On another point, I am keenly aware that many mortgages were simply defaulted even though the lender and the homeowner could have worked out a package that may have resulted in the lender receiving their full monies however, the investor involved in the loss mitigation departments would simply walk.
I never understood if PMI factored into these deals and helped ease the loss of the lenders. I also understand, in most cases, lenders lose alot more money sending a house through the foreclosure process than they would have lost if the simply worked out a package with the homeowner and kept them in the house.