'It was so good, they had to do it again.'
Mortgage Insurance reportedly is being hyped as a way to "protect against the increased risks in loans that have smaller down payments." See Gretchen Morgenson, "Fair Game/Note to Banks: It's Not 2006 Anymore" p. 1, col. 4 (New York Times, "SundayBusiness" Section, Sunday, March 27, 2011).
Reportedly, lenders are on the receiving end of sales pitches to require smaller down payments when or if they make home loans. (Yes, again.) They are being told that Mortgage Insurance will pay if the buyer does not.
There is a problem with that sales pitch. The problem is reality. Instead of making payments on Mortgage Insurance Policies at all times since the current Financial Fiasco began, Mortgage Insurance Companies took a different view of the situation. They are attempting to rescind those Mortgage Insurance Policies which were, they say, based on fraud and misrepresentation.
If you or your banking clients think that Mortgage Insurance Companies will change their approach in 2011, please think again. Ask the Mortgage Insurance Companies what they will do, not the people who make money from convincing you to trust them and not your lying eyes.
Please Read The Disclaimer.
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