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MBA Urges Regulators To Avoid Invoking Suitability Standards
The Mortgage Bankers Association (MBA) recently made a preemptive strike against what it obviously perceives as the next threat against the mortgage industry - "suitability standards." Read more...

 

Mortgage Insurance Facts

In case of the potential default of payments by the borrower, mortgage insurance is coverage to the mortgage lender, as it practically consists of an insurance policy like any other which requires premiums to the paid. Also, there has to be kept in mind that premiums usually being passed on to the buyers of the mortgage, by the mortgage lender. Either on a monthly basis, or as a lump sum amount, mortgage buyers may wish to pay the premiums at the end of the year or closing period. Pay attention to the fact that mortgage insurance companies target their advertisements to the borrowers, since mortgage insurance premiums have to be paid by the borrowers of mortgages.

An important aspect which has to be taken into consideration is being represented by the fact that mortgage insurance companies are on the lookout for leads of potential mortgage insurance policy buyers. Also, there has to be kept in mind that insurance mortgage policy buyers are people who have taken mortgages from a financial institution. As mortgage insurance is obligatory for most borrowers, pay attention to the fact that a person making at least 20% of the down payment is not required to buy mortgage insurance. From those mortgage buyers who have paid less than 20% of the down payment, mortgage leads are invited. The most viable option for garnering mortgage insurance leads is considered to be telemarketing. Various mortgage companies who wish to pass on mortgage insurance to their buyers may be called by call-center employees. Leads, which are then forwarded to the insurance company, are being constituted by companies interested in buying mortgage insurance for their borrowers. Pay attention to the fact that call centers may also cold-call the mortgage borrowers themselves. It follows up and tries to close the insurance policy on the mortgage borrower, once the insurance mortgage company gets hold of a potential lead.

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