The Walnut Creek, California-based mortgage insurer, PMI Mortgage Insurance Co., announced on Thursday an expansion that doesn’t just include Home Affordable Refinance Program (HARP) eligible loan owners or guaranteed -by-government-run conservatorships, Fannie Mae or Freddie Mac.
The revised program will allow the existing mortgage insurance to remain the same with a modification to the insurance certificate in order to cover the new refinanced loan amount.
In addition, PMI has no fees associated with the modification for the new or existing lender or servicers programs.
The new modified loan should help put the borrower into a better financial position if they meet certain criteria, such as making timely mortgage payments on their current loans.
“PMI is working closely with mortgage servicers and the GSEs to keep borrowers in their homes supporting numerous housing and foreclosure prevention initiatives. Providing consistent solutions across all of our insured loans helps investors accelerate refinancing to lower monthly payments, or otherwise improve the position, of all borrowers who have PMI insured loans,” said VP, Business Intelligence and Analytics at PMI Mortgage Insurance Co., Chris Hovey.
Existing insurance modification will allow coverage to be extended to the new revised loan regardless if the property value is currently lower than the originally insured loan amount.
These “underwater” properties are not eligible for new refinanced loans under traditional programs.
Additionally, allowing the modification of the mortgage insurance on existing loans, regardless of the investor or servicer, signifies a true united approach to ease the current stricter mortgage guidelines opening up m