Financing in Austin>Question Details

Austin Messe…,  in Austin, TX

Given all the negative headlines about the financial sector why aren't we reading anything about PMI providers

Asked by Austin Messenger, Austin, TX Thu Nov 13, 2008

? You would think they'd be really hurting yet I don't recall seeing anything about this segment of the mortgage industry.

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The short answer is because lenders are back to requiring 20% down with no PMI. Which means-of all things-you actually have to put some equity into the home up front in order to purchase it! Bye-bye sub-primes and good ridence.
0 votes Thank Flag Link Fri Nov 14, 2008
PMI company is getting hammered like everyone else.

52wk high 17.61....today....1.99....that's almost as good as owning a restaurant.
As my favorite line goes...how to end up with a million dollar rest biz? Start with 2.
They were golden for a while.....but they're having to pay up now.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Thu Nov 13, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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My theory:

pmi is typically given to people with "good loans". these bad loans are typically 80-20 or 80-10-10 so they didn't need PMI so no one PMI company is hurting...
0 votes Thank Flag Link Thu Nov 13, 2008
Because alot of the foreclosures were on 80/20 loans and there was not any PMI, so the pmi companies are actually getting a reprieve from the mortgage companies greedy invention of those 80/20 loans. I agree that their stock is taking a hit, they are however doing a great job of getting the foreclosures through the system, cleaned and back on teh market quickly. they are also very streamilined when it comes to looking at offers, getting a good price for their properties and doing it in a timely manner, much more efficient than the banks are doing.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Thu Nov 13, 2008
They are hurting. I think that because these companies are not household names, consumers are not aware that these businesses have been financially "off" for some time.

For example, Genworth stock within the last few days went to an all-time low. Some of the other companies providing private mortgage insurance are MGIC, AIG United Guaranty, Radian and Republic Mortgage Insurance Company. Once you start tracking their stock performance, searching for information about them, you'll see that they've had a hard time of it also. Hope this helps.
0 votes Thank Flag Link Thu Nov 13, 2008
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