 |
Primary Mortgage Insurance
Primary Mortgage Insurance is typically used when a lender has limitations on individual mortgage loans from a regulatory or internal risk management standpoint. With primary mortgage insurance, the frequently chosen coverages
are "standard coverage" or "amortising". Standard Coverage insures either a percentage of the loan amount or a fixed exposure amount. This option provides the most coverage over the life of the loan. Amortising coverage insures the portion of the loan above a certain
amount. Effective coverage declines over time as the loan decreases through principal payments by the borrower. This option can be a very cost-effective solution to internal or regulatory risk requirements.
|
|