tag:blogger.com,1999:blog-33255068.post3172833753995964699..comments2023-11-02T05:18:21.296-07:00Comments on Bakersfield Bubble: Local market updateBakersfield Bubblehttp://www.blogger.com/profile/12663275045022347451noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-33255068.post-75627774847463393232007-07-19T17:25:00.000-07:002007-07-19T17:25:00.000-07:00xs10shell said... Under what conditions does PMI k...xs10shell said... <BR/>Under what conditions does PMI kick in?<BR/><BR/><BR/>Mortgage Insurance is needed to cover your mortgage when you have put down less than 20% of sale price.Mikehttps://www.blogger.com/profile/01282719850535717195noreply@blogger.comtag:blogger.com,1999:blog-33255068.post-46231288966368630252007-07-19T12:55:00.000-07:002007-07-19T12:55:00.000-07:00Under what conditions does PMI kick in?When there ...<I>Under what conditions does PMI kick in?</I><BR/><BR/>When there is a loss on a foreclosure, the lender makes a claim to the MI company, just like you or I would when do when we have an insurance claim. <BR/><BR/>I don't the MI companies are going to get hit as hard as you would expect. Most of the 100% financing deals I've seen are either 100% subprime loans or 80/20 combo loans to avoid MI. I saw today that 2nd mortgage MBS's have just been downgraded by the bond rating services. MI companies do have some exposure to Alt-A loans such as No Ratio, No Doc, and stated income, but again, most of the time the originator structured those types as combo loans. MI companies historically only insured Fannie/Freddie quality deals. Only the last few years did they expand into the Alt-A arena, probably because it was losing market share. MI will pretty much be required since lenders will want to have protection when loans go bad. I see the Alt-A guidelines are getting much tighter. No more combo loans. Higher credit scores. Lower LTV's, even for full doc loans (no more 100% financing). Payment shock limits. More reserves. Things are going back to a more traditional underwriting guidelines.subsonic22https://www.blogger.com/profile/14415787248331941478noreply@blogger.comtag:blogger.com,1999:blog-33255068.post-11137629715712310602007-07-19T10:59:00.000-07:002007-07-19T10:59:00.000-07:00PMI news:Some housing bubble news from Wall Street...PMI news:<BR/><BR/><BR/>Some housing bubble news from Wall Street and Washington. Bloomberg, “MGIC Investment Corp., the largest U.S. mortgage insurer, said second-quarter profit plunged 49 percent as it paid more in claims. MGIC, which protects banks against defaults on home loans, said losses climbed 61 percent to $235.2 million.”<BR/><BR/>“‘We know California is a developing problem. We know Florida is a developing problem,’ said Geoffrey Dunn, analyst at Keefe Bruyette & Woods Inc. ‘It’s simply the amplitude that’s the surprise in the quarter. We’re going to need help from management and a lot more color on specifically what happened.’”Bakersfield Bubblehttps://www.blogger.com/profile/12663275045022347451noreply@blogger.comtag:blogger.com,1999:blog-33255068.post-57123514218119669522007-07-19T07:31:00.000-07:002007-07-19T07:31:00.000-07:00Under what conditions does PMI kick in? I never pa...Under what conditions does PMI kick in? I never paid that much attention to it but I always thought borrowers were forced to buy it when making low down payments to protect the lender in case of defaults. What is happening with PMI companies these days, anyway?xs10shellhttps://www.blogger.com/profile/14612973840497735973noreply@blogger.comtag:blogger.com,1999:blog-33255068.post-32812590182672567872007-07-18T22:44:00.000-07:002007-07-18T22:44:00.000-07:00universal home loans??notice that all of the pyram...universal home loans??<BR/>notice that all of the pyramid borrowing schemes end borrower is a single person!!!! heavy heavy Hispanic and southeast Asian borrowersthe shortenderhttps://www.blogger.com/profile/04821524980547662288noreply@blogger.com