Mortgage insurance getting harder to get

by mega » Sat Feb 09, 2008 03:39 pm
Posts: 118
Joined: 23 Jan 2008

Mortgage insurer MGIC Investment Corp. is tightening its standards nationwide and, more so, in weaker markets, including Tacoma.

Lenders traditionally have required buyers taking loans for more than 80 percent of a home''s value to buy private mortgage insurance from companies such as MGIC or PMI Group Inc.

According to an Inman News story, the two insurers had previously raised rates for borrowers with lower credit scores and loans for more than 95 percent of a home''s value and stopped issuing insurance altogether where loans over 95 percent and credit scores were particularly low.

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