A Private Mortgage Insurance Company Expands Eligibility?

That’s right, it appears that PMI the mortgage insurance company is expanding some of their guidelines.   Here’s a quick overview:

• It’s not for “distressed markets.”
• By “distressed markets” they mean California, Arizona, Nevada, Florida and Michigan and portions of many other states.
• They are increasing loan to values by 5%.

Now ask yourself, are they doing this because:

1. They believe the markets are past their worst and things are improving?
2. They believe that by doing that for the “non-distressed” markets, they can return to profitability and capture market share that is currently going to FHA?

My vote is on #2.

Tom Vanderwell

PMI Ups LTVs, Adds Mortgage Products to Insurance Plans : HousingWire || financial news for the mortgage market

PMI Group (PMI: 2.27 +8.10%) expanded its eligibility and underwriting guidelines for a number of loan products it insures, in many cases increasing maximum loan to value (LTV) thresholds.

Condominium mortgages can now by insured in non-distressed markets to a maximum 95% LTV. Previously, the maximum LTV was 90%. This new limit does not apply to attached housing in Florida. In distressed markets, the LTV maximum is 90%, up from 85%.

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