Sentences with phrase «borrowers default on a mortgage»

Mortgage insurance refers to any insurance policy that protects lenders against the risk of a borrower defaulting on a mortgage loan.

For example, if a borrower defaults on their mortgage, Fannie and Freddie are responsible for the losses on the loans they guarantee to investors, while Ginnie Mae is financially responsible for the bond payments to the holders of Ginnie Mae securities.

Private mortgage insurance (PMI) exists to protect the lender when a borrower defaults on their mortgage loan.

When the loan against a home is greater than 80 % of the home's resale value, the lender is very likely to lose money in the event the borrower defaults on the mortgage.

Mortgage insurance protects the lender in case the borrower defaults on the mortgage, while benefiting the borrower by allowing very little down payment or equity.

Mortgage insurance refers to any insurance policy that protects lenders against the risk of a borrower defaulting on a mortgage loan.

The insurance provided by HUD is what protects lenders originating these loans from the risks of lending, like a borrower default on the mortgage.

When Fannie and Freddie buy loans, they assume the majority of the risk if a borrower defaults on their mortgage.

Created by the Federal Housing Administration, these loans are insured by this government agency, so that guarantees that lenders won't lose their money if borrowers default on their mortgage.

So for the loans which are underwritten to, say FNMA Guidelines, investors know there is a certain underlying credit quality for the MBS that they purchase and even if a borrower defaults on their mortgage, the investor will be fully repaid.

Many lenders require it so that they are protected from huge losses in the event of a borrower defaulting on a mortgage.

Fannie Mae and Freddie Mac encourage home ownership by purchasing mortgages on the secondary market, securitizing them, and reselling them to investors with the implicit guarantee that the government will reimburse investors if borrowers default on the mortgages.

If a borrower defaults on a mortgage, the investors still get paid by the GSE.

These benefits are possible because the VA promises to repay at least a quarter of the loan amount if one of its borrowers defaults on the mortgage.

MORTGAGE DEFAULT INSURANCE A type of insurance which protects the mortgage lender in case the borrower defaults on the mortgage payments.

If a borrower defaults on a mortgage worth less than the house then the bank can foreclose and be made whole.

«The absence of equity in their home has become a key predictor of a borrower defaulting on their mortgage payment in this distressed market.

In other words, if a borrower defaults on the mortgage, Fannie or Freddie will pay the investor (the ultimate owner of the mortgage debt) instead of the borrower.

So as the housing market went sour, and borrowers defaulted on their mortgages, these contracts collapsed, too, amplifying the meltdown.

The premiums fund the Mutual Mortgage Insurance Fund, which would bail out lenders if borrowers default on their mortgages.

Is your job to provide lenders with private mortgage insurance to protect them against great loss should their borrowers default on a mortgage?

When a borrower defaults on a mortgage loan in Virginia, the lender usually has a right to pursue the borrower for a deficiency — the amount still owed on the loan after the net proceeds of the foreclosure sale have been applied to the loan balance.

We could summarize that for the duration of a loan, fixed mortgage rates are determined on the following basis: cost of capital + administration costs and / or mortgage negotiations + risk premium (in the risk of the borrower defaulting on the mortgage) + the bank's desired profit = cost of the mortgage for the borrower.

Private mortgage insurance protects lenders in the case that borrowers default on their mortgage.

PMI protects lenders in the case that borrowers default on their mortgage and also benefits homebuyers, as it allows buyers to purchase a home with a low down payment.

The number of borrowers defaulting on mortgages has dropped significantly in the last year, according to a recent report.

Not exact matches

The chance a new borrower will default on a mortgage has dropped sharply.

Because its purpose is to reduce risk to lenders, mortgage insurance is priced to reflect the relative danger of the borrower defaulting on the loan.

Measures of negative equity have become a key component in crafting policies to address the foreclosure crisis, as these borrowers are twice as likely to be seriously delinquent or in default on their first - lien mortgage compared with positive equity borrowers.

For example, a relatively high percentage of first - time borrowers will default on their credit cards, mortgages, and other loans.

Lenders set their mortgage rates in order to offset the risk of borrower default, and also to make some profit on the loan (it is a business after all).

You, the borrower, pay mortgage insurance premiums, which cover the lender's losses if you default on your mortgage.

They are insured by the Federal Housing Administration, which will fully compensate a lender if a borrower defaults on his FHA mortgage.

Private mortgage insurance (PMI) is insurance which covers the mortgage lender in case the borrower defaults on repaying the mortgage.

(ii) within such period as may be specified in the guarantee or related agreements, the Secretary shall pay to the holder of the guarantee, to the extent provided under subsection (a)(2), the unpaid interest on, and unpaid principal of the portion of guaranteed portion of the mortgage with respect to which the borrower has defaulted, unless the Secretary finds that there was no default by the borrower in the payment of interest or principal or that the default has been remedied.

Borrowers with FHA loans for mortgage insurance protecting the lender from loss in case borrowers default on Borrowers with FHA loans for mortgage insurance protecting the lender from loss in case borrowers default on borrowers default on the loan.

Private mortgage insurance (PMI) is insurance which covers the mortgage lender in case the borrower defaults on repaying the mortgage.

On the other hand, borrowers with delinquencies or defaults in their past could face additional scrutiny when applying for a mortgage loan.

A higher credit score is favored by lenders, because it suggests that a borrower is less likely to default on the mortgage.

Obviously someone within the FHA knows that you can not make a mortgage loan to low score borrowers while seeking low mortgage default rates as FHA has refused to lower the Upfront Mortgage Insurance Premium on each mortgage originated from the current 1.75 % as they know they will have higher mortgage default rates with the lower FICO score bomortgage loan to low score borrowers while seeking low mortgage default rates as FHA has refused to lower the Upfront Mortgage Insurance Premium on each mortgage originated from the current 1.75 % as they know they will have higher mortgage default rates with the lower FICO score bomortgage default rates as FHA has refused to lower the Upfront Mortgage Insurance Premium on each mortgage originated from the current 1.75 % as they know they will have higher mortgage default rates with the lower FICO score boMortgage Insurance Premium on each mortgage originated from the current 1.75 % as they know they will have higher mortgage default rates with the lower FICO score bomortgage originated from the current 1.75 % as they know they will have higher mortgage default rates with the lower FICO score bomortgage default rates with the lower FICO score borrowers.

If the borrower defaults on their loan and there isn't enough equity in the home to cover what is owed on the mortgage, private MI is there to offset the loss.

PMI is basically an insurance policy that you (the borrower) take out for the lender to protect them from financial losses in the event that you default on your mortgage.

Mortgage insurance is an insurance policy that protects a mortgage lender or title holder in the event that the borrower defaults on payments, dies or is otherwise unable to meet the contractual obligations of the mMortgage insurance is an insurance policy that protects a mortgage lender or title holder in the event that the borrower defaults on payments, dies or is otherwise unable to meet the contractual obligations of the mmortgage lender or title holder in the event that the borrower defaults on payments, dies or is otherwise unable to meet the contractual obligations of the mortgagemortgage.

FHA Loan Tip for Borrowers in 2018: For HUD to revert your loan back to a bank, FHA guidelines require you not be in default on another FHA mortgage, and you must already be in default and not qualified for other options.

Mortgage Insurance Premium Monthly payments made by a mortgage borrower to the Federal Housing Administration (FHA), or to a private lender for transmittal to the FHA, to protect against default on mortgage pMortgage Insurance Premium Monthly payments made by a mortgage borrower to the Federal Housing Administration (FHA), or to a private lender for transmittal to the FHA, to protect against default on mortgage pmortgage borrower to the Federal Housing Administration (FHA), or to a private lender for transmittal to the FHA, to protect against default on mortgage pmortgage payments.

«Borrowers in default on their mortgage at the time of the short sale (or pre-foreclosure sale) are not eligible for a new FHA - insured mortgage for three years from the date of the pre-foreclosure sale.

Premiums for private mortgage insurance, which protects a mortgage lender in the event a borrower defaults on their loan, can be written off on a federal tax return.

«Lenders may make exceptions to this rule for borrowers in default on their mortgage at the time of the short sale if

Foreclosure A legal procedure in which defaulting on mortgage payments or breaking the terms of the agreement cause a borrower to lose a property's title, or cause the property to be sold.

The FHA provides mortgage insurance on loans issued by private lenders, backing them financially in case borrowers default or do not honor the terms and conditions of their mortgages.