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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

The Mortgage Encyclopedia. Copyright © 2004 by Jack Guttentag. Used with permission of The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Essent Group announced that its wholly owned subsidiary, Essent Guaranty has obtained $424.4M fully collateralized excess of loss reinsurance coverage on mortgage insurance policies written by Essent in 2017 from Radnor Re 2018-1 Ltd., a newly formed Bermuda special purpose insurer.
The 'AAAsf' rating assigned to the Class A2-R notes is supported by the credit enhancement provided by the subordinate Class AB, AC and B notes; the lender's mortgage insurance policies; the liquidity facility, which is equivalent to 3.4% of the outstanding note balance; and CBA's mortgage underwriting and servicing capabilities.
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.
Internet- based moneysupermarket.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.
In addition, Radian Guaranty, Inc., 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.
Despite these issues, mortgage insurance policies are being written in record numbers.

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