Louisville Properties Blog
Louisville Properties Blog

Mortgage Insurance

Private Mortgage Insurance Companies Slowly Returning to the Market

The Federal Housing Authority, which insures mortgage losses for lenders if borrowers don't make their payments, is reevaluating its policies to shore up its financial position as a rising number of mortgage defaults have depleted its operating funds. While the FHA tightens lending requirements, private mortgage insurance companies are beginning to enter the market again after running for cover when housing markets began tanking. "Private mortgage insurers are coming back," says Mark Goldhaber, senior vice president for affordable housing at Genworth Mortgage Insurance in Raleigh, NC. The FHA was created during the depths of the Great Depression in 1934 to help low-to moderate-income people buy their own homes. The agency's structure allows it to expand its role when housing markets take a downturn, but in 2009, the FHA insured almost 30 percent of all single-family mortgages. Optimally, the FHA should insure no more than 10 percent. "We have stretched to the limit to help stabilize the housing market," FHA Commissioner David Stevens said in a recent speech in Orlando, FL. "But we need to stay ahead of any potential problems." Although private mortgage companies are cautiously entering the market again, they are also changing lending standards to limit their exposure to risk. Many are taking a wait-and-see approach until the FHA finishes tightening lending standards. Are you thinking of selling your Louisville real estate, but would like to save some money by doing some of the legwork yourself? Call 502.744.9504 today to speak with the pro at Louisville Properties, the leading Louisville discount real estate broker. He provides all the tools and support you need to sell your commercial or residential Louisville real estate. He will help you sell your home, condo, vacant lot, commercial property and other types of real estate. Resource link: http://www.latimes.com/business/custom/yourmoney/la-fi-0425-lew-20100425,0,6204112,full.story...
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