Curving the Foreclosure Crisis?
Posted Jan 13, 2007 @ 3:25 pm, Viewed by 567 Visitors, Read 567 Times.As of January 31, 2007 mortgage insurance companies will no longer provide MI (Mortgage Insurance) for 100% loans to buyers with scores under 575. This will impact My Community Mortgage and other programs that allow buyers with no credit scores to get 100% financing. Final word is not in yet but some MI companies are indicating they will allow only 85% LTV, others 95% LTV and some on the fence as to what they will allow.
This will go a long way to curve and eliminate a great many of the foreclosures that are occurring on a national level at the moment. A great many of the foreclosure properties that are in the pipe line as we speak, are from these type of loans. Of course this does not hinder the 80/20 type loans, but it is my understanding that the industry big boys are dampening these type of products as well.
It should maintain the industries goals to provide products for as many Americans as possible in acquiring a home. However; there has to be a line in the sand on the weaker products that facilitate too many defaults.
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Ed Pierce: Full time Realtor and Default Services Manager for six affiliate offices in the Greater Memphis area. Real estate is more than a business, it is a hobby and passion for me. Read More
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This is a good step towards ceasing foreclosures. We have a huge problem in Colorado right now with them. They're really brining the market value of homes down!