More people are buying homes due to population growth, and people are buying larger homes, which results in the overall growth in mortgage originations," said Dan Walker, chief risk officer for United Guaranty Corp.
Mortgage insurance also differs from other property/casualty lines in that it is required to maintain a monoline business structure, which ensures that reserves related to mortgage insurance are not mixed with reserves for other business lines.
For example, mortgage modification could allow a borrower who has paid three years into a 30-year, fixed-rate $150,000 mortgage to refinance the remaining 27 years, not the entire 30 years.
5% of the mortgage amount, depending on where you live.
Requiring borrowers to meet certain underwriting standards is the most important step lenders take to manage mortgage credit risk.
3) To compensate for greater risk, lenders may require a borrower who takes out a mortgage having a high loan-to-value ratio to pay a higher interest rate (or, more often, to purchase mortgage insurance, which raises the effective interest rate).
If it is not practicable to estimate the fair values of the mortgage servicing rights and the mortgage loans (without the mortgage servicing rights), the entire cost of purchasing or originating the mortgage loans shall be allocated to the mortgage loans (without the mortgage servicing rights) and no cost shall be allocated to the mortgage servicing rights.
For the purpose of evaluating and measuring impairment of capitalized mortgage servicing rights, a mortgage banking enterprise shall stratify those rights based on one or more of the predominant risk characteristics of the underlying loans.
Forward-looking statements relate to anticipated revenues, gross margins, earnings, expansion of mortgage
services marketing, improvement of mortgage
services efficiency, and growth of the market for our services and products.
2 million first mortgage and a $150,000 line of credit for a co-op complex on Gibson Boulevard in Valley Stream, N.
A $1 million first mortgage and a $200,000 line of credit for a co-op building on Kappock St.
Almost all residential-mortgage securitization has succeeded on the basis of the ingenuity of the issuers of mortgage securities in finding ways to eliminate risk.
The first securitization wave began in 1968 with the issue of Government National Mortgage Association (Ginnie Mae) pass-throughs, securities based on a pool of mortgages already guaranteed by the federal government, primarily through the Federal Housing Association.
A lender may take actions against a delinquent borrower by imposing late fees and, in cases of numerous missed payments, by foreclosing on the mortgage and forcing a sale of the property securing the loan.
The process of creating and implementing these standards and applying them to the borrower is called mortgage underwriting.