MI Benefits Lenders – Now and Later
MI is the most secure way to help borrowers get into homes sooner. And help keep them there. MI is good for the lender. Good for the borrower.
-
MI means security. In the event of borrower default on PMI-insured loans, PMI typically reimburses the lender:††
- Principal and interest
- Foreclosure expenses
- Legal fees
††Subject to conditions, limitations and exclusions of the applicable MI policy.
-
MI facilitates liquidity. Investors prefer loans backed by default protection, such as MI. When rates rise again, they’ll be looking for predictability of returns. MI can give you more liquidity when reselling to the secondary market.
-
MI is flexible. PMI offers a range of payment plans to help lenders meet borrower needs – such as annual, monthly, single and financed premiums.
MI streamlines refinance. When you refinance borrowers whose loans are currently insured by PMI, our Streamlined Refinance program requires less documentation than a purchase-money origination. So the origination process is quick and easy.
-
Borrower-paid MI is 100% tax-deductible through 2010 for eligible borrowers with adjusted gross incomes of up to $100,000.* Nearly 90% of borrowers with PMI-insured loans that closed in 2007 should have qualified for the federal tax deduction of 2007 borrower-paid MI premiums.+ And, now that the law has been extended, even more eligible borrowers with adjusted gross incomes up to $100,000 will be able to deduct 100% of the MI premiums they pay through 2010.
-
MI is knowledgeable. Look to PMI for intelligence on market trends and outlooks, available online in our quarterly Economic and Real Estate Trends Report (ERET) and our Housing & Mortgage Market Report (H&MMR)
-
MI supports borrowers in difficulty. MI provides lenders with loss mitigation services, ranging from homeownership counseling to loan workouts that help borrowers get back on track with regular payments and avoid, or reduce the impact of, foreclosure. Home Preservation Program.
|
*Subject to restrictions under the Internal Revenue Code. MI tax deductibility is based on transactions closed in 2007-2010 and borrower-paid MI premiums allocable to those years PMI cannot provide tax advice. Taxpayers should consult their own tax advisors concerning applicability of this new deduction to their particular circumstances under the Internal Revenue Code and the laws of any other taxing jurisdiction. This information is not intended or written to be used, and it cannot be used, for the purpose of avoiding U.S. federal, state or local tax penalties. †Based on transactions closed in 2007 and borrower-paid MI premiums allocable to 2007; based on adjustable gross incomes reported to PMI by lenders at loan origination.ion. |
