Mortgage insurance is an insurance policy that protects the lender in the event the borrower defaults on the mortgage. Mortgage insurance is not homeowners insurance. Mortgage insurance will not pay off the mortgage if you die. It doesn’t offer any protection to you at all. It is protection for the lender but you pay for it.
MBIA Inc just posted an unexpected Q2 gain today becoming the second bond insurer who used a 1 year old accounting rule to it’s full advantage. Analysts were expecting a loss of $1.37 a share but after the accounting shenanigans MBIA posted a gain of $7.41 a share.
Triad Guaranty (Nasdaq: TGIC), a private mortgage insurer, lost $198.8 million in the second quarter. TGIC has lost a total of $348.8 million in 2008.
This drastic lost is even more shocking when you compare it to the fact TGIC posted a gain of $12 Million just a year ago.
Mortgage Insurance giants PMI, MGIC, and Radian, are on the verge of collapse as claims surge. Mortgage insurance companies stock losses are the possible trigger to another stock market crash.
New York Governor and former consumer champion, Eliot Spitzer discuss the demise of the big mortgage and bond insurance companies on Jim Cramer’s Mad Money last Friday,
Title insurance is important when buying a home since it involves researching the public record to determine you’ll have all the ownership rights once you close.
The title insurance is in place in case a mistake was made in the title search and a person comes forward with a legitimate claim of ownership to your home. Should the claim be verified, your title insurance pays the new found owner his claim and you get to keep the house.
Private mortgage insurance or PMI is an insurance policy that protects the lender from loss on mortgages with less than 20% equity in the event of foreclosure…and you pay for it!
Don’t confuse hazard or homeowner’s insurance protects you from a loss like a fire with private mortgage insurance. PMI protects the lender if you don’t pay.
Hazard insurance covers replacement costs for damages caused by fire, wind or disaster that might affect thevalue of the home. Hazard insurance also includes liability and theft coverage.
A hazard insurance policy is a package policy that combines more than one type of insurance coverage in a single policy.
Congress passed and the President signed into law recently the tax deductibility of mortgage insurance premiums.
Halleluiah!
This is huge! I know I make a big deal about what most of you would almost surely ignore. The King of Real Estate Minutiae and all…but this one really is a big deal.
So listen up, there are a few rules to get the most out of the new law, okay?
Our Feed by Reader
Our Feed by Email
Our Feed by Mobile
