Yesterday I attended the "Fannie Mae Back to Basics Road Show". I was really hoping to get some clarity and "insider nitty gritty" but left feeling a bit underwhelmed. The information that was covered was (I guess as the title says) the "basics" which every Loan Originator SHOULD KNOW and Fannie Mae guideline changes which have all ready been announced and I’ve all ready written about.
I did learn something new, however…and it’s really a big "duh". There was a panel of reps from various private mortgage insurance companies who were covering their many guideline changes as well. One rep brought up the point that private mortgage insurance companies actually work with home owners who are facing foreclosure (of course the home owner must currently have pmi in order to have this assistance). Private mortgage insurance may be required when a mortgage has a greater loan to value than 80%. It protects the lender against loss (such as foreclosure). It only makes sense (this is my personal "duh" part) that a pmi company would want to try to avoid a loss (an insured mortgage going into foreclosure). Private mortgage insurance companies have loss mitigation departments, including mortgage loan counselors, to help home owners who have pmi and are in trouble with their mortgage payments.
From MGIC’s website:
Helping you maintain your dream of homeownership is our commitment here at MGIC. As the mortgage insurer of your mortgage loan, we work closely with your lender to resolve delinquencies, which could result in losses for MGIC, the lender and you.
If you are having difficulties meeting your monthly mortgage payment and you have private mortgage insurance, contact your mortgage company AND the private mortgage insurance company who insured your mortgage.
Here are some links (I’ll update with more pmi resources as I locate them).