Mortgage Insurance

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Mortgage Insurance

An insurance policy that provides coverage to a lender in the event that a borrower defaults on a mortgage. This ensures that the lender does not incur a loss if the borrower is unable to repay the loan. While the lender pays the premium, it generally passes on payment to the borrower (and may roll it into the monthly mortgage payment). A lender may require a borrower to pay for mortgage insurance in certain high risk situations. See also: Loan-to-Value Ratio.

Mortgage Insurance

Insurance provided the lender against loss on a mortgage in the event of borrower default.

In the U.S., all FHA and VA mortgages are insured by the federal government. On other mortgages, the general practice is to require mortgage insurance from a private mortgage insurer when the loan amount exceeds 80% of property value. Borrowers pay the insurance premium in all cases. See Private Mortgage Insurance.

References in periodicals archive ?
Under the Arizona order, PMI Mortgage Insurance and PMI Insurance may issue mortgage insurance policies under pending commitments through the close of busi ness on Sept.
com reckons consumers waste pounds 245million a year on overpriced mortgage insurance policies which pay home loans when borrowers are ill, injured or made redundant.
has announced a comprehensive discount program for mortgage insurance policies ordered through its MI Online system.
Mortgage insurance policies can offer peace of mind--but are they worth the cost?
The Government and the insurance industry have agreed to work to ensure the lifting of a "benefits trap" threat to 15 million people who have taken out loan and mortgage insurance policies against the threat of job loss, it was announced last night.
The actions taken are based on an analysis of the exposure to claims on the mortgage insurance policies on the underlying pool relative to each note's enhancement.
The mortgages collateralizing the series were originated by various originators and, at issuance, over 68% of the mortgages were covered by deep mortgage insurance policies provided by Mortgage Guaranty Insurance Corp.
7 million or 37% of the outstanding portfolio is now covered by primary mortgage insurance policies with a 2% deductible that will limit but not eliminate the fund's exposure to loan losses.
At issuance over 60% of the mortgages in series 2003-OPT1, 2003-OPT2, and 2004-OPT2 are covered by deep mortgage insurance policies provided by Radian Guaranty Inc.
3 million or 38% of the outstanding portfolio is now covered by primary mortgage insurance policies with a 2% deductible that will limit, but not eliminate the fund's exposure to loan losses.
67% of the loans were insured by mortgage insurance policies issued by MGIC.
The trusts contain primary mortgage insurance policies that insure against default a fraction of the applicable loan balances bringing down the effective loan to value ratio on these loans to 60%.

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