PMI Companies & Short Sales

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PMI Companies & Short Sales

Tips, tricks, and experiences when you have a PMI company on a transaction.

Members: 138
Latest Activity: Feb 23

Dealing with PMI and Insurance Companies in Your Short Sales

Thought it would be good to add a new discussion for each PMI & Insurance company we run across with your experiences, questions, etc. Also include contact information.

Discussion Forum

flat out "NO" from MI

Started by Amanda Pittman. Last reply by joe beauchamp Jun 19, 2012. 1 Reply

MI payoffs and the new CA laws

Started by Danny D Sep 20, 2011. 0 Replies

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Comment by Jean Beymer on February 18, 2011 at 9:36pm

I have not had any luck getting the MI companies to allow lien releases without considerable contributions.  The younger the borrower the more contribution they expect. 

They will take notes.   zero interest - 30 years - low low payments.  Payments not to begin for 6 months.  If they stay current on payments then have been able to get language allowing a 50% discount for a cash payment in the future.

Best I have been able to get.  Some borrowers agree to the terms and close.  Others have just let it go to foreclosure since we are in a no deficiency state.

I now call the MI companies early in the transaction.  Especially if it is with a BofA Equator. BofA will release the lien and allow you to close but leaves vague language regarding potential liabilitiy.  When I've called the MI companies they had never heard from BofA and they expect a high cash contribution.

 

 

 

Comment by Dean Ouellette on November 8, 2010 at 3:00pm
Thanks Dawn, anyone have history with them, need them to waive pmi, real hardship seller was relocated for job
Comment by Dawn Maley on November 8, 2010 at 2:57pm
DEAN, YES - THAT WOULD BE UNITED GUARANTEE CORP.
Comment by Dean Ouellette on November 8, 2010 at 2:53pm
anyone heard of a PMI company called United?
Comment by Michael Schneider on October 16, 2010 at 10:55am
I also have a BofA (was Countrywide), 80/20, with Old Rebublic MI on the 2nd, waiting for response from Old Republic.
Here, I think, is probably the underlying issue with these loans, for those of us who are waiting for some resolution.
Old Republic rescinded their MI coverage. Here is an excerpt from their most recent 10-Q filing:

On December 31, 2009, two of the Company’s mortgage insurance subsidiaries, Republic Mortgage Insurance Company and Republic Mortgage Insurance Company of North Carolina (together “RMIC”) filed a Complaint for Declaratory Judgment in the Supreme Court of the State of New York, County of New York, against Countrywide Financial Corporation, Countrywide Home Loans, Inc., The Bank of New York Mellon Trust Company, N.A., BAC Home Loans Servicing, LP, and Bank of America N.A. as successor in interest to Countrywide Bank, N.A. (together “Countrywide”). The suit relates to five mortgage insurance master policies (the “Policies”) issued by RMIC to Countrywide or to the Bank of New York Mellon Trust Company as co-trustee for trusts containing securitized mortgage loans that were originated or purchased by Countrywide. RMIC has rescinded its mortgage insurance coverage on over 1,500 of the loans originally covered under the Policies based upon material misrepresentations of the borrowers in their loan applications or the negligence of Countrywide in its loan underwriting practices or procedures. Each of the coverage rescissions occurred after a borrower had defaulted and RMIC reviewed the claim and loan file submitted by Countrywide. The suit seeks the Court’s review and interpretation of the Policies’ incontestability provisions and its validation of RMIC’s investigation procedures with respect to the claims and underlying loan files.
Comment by Lisa Helweg on June 25, 2010 at 1:12pm
Armi-Thanks for the info. I'll give it a try.
Comment by Stephanie Lim on June 25, 2010 at 10:28am
Unfortunately I'm afraid that they ARE going to make it a business practice to pursue. I think that there are a lot of surprises in store in this arena.
Comment by Stephanie Lim on June 25, 2010 at 9:17am
Armi--very interesting info!

Food for thought...is this going to be similar to what happens with car insurance? Car A crashes into Car B and totals the car. Car A does not have insurance, car B does. Doesn't Car B's insurance company go after Car A's owner looking to recover the damage?

I have a big problem with everything going on with these PMI companies. ESPECIALLY since I seem to have the issues popping up quite a bit when 20% was put down on the loan and the first lienholder "secretly" placed a MI policy on the loan. Then the MI company comes out of nowhere in the short sale demanding payment. I think we're going to start seeing this more and more and it seems so wrong.
Comment by Lisa Helweg on June 25, 2010 at 6:40am
How does one go about contacting the MI Company directly? I think the negotiator is playing hardball and blaming it on the MI Company. I have read tips on this site that it is possible to go directly to the MI Company, but where would I start? ie, what department, what would be my approach?
Comment by Teresa Lett on May 21, 2010 at 9:03am
Thanx Michael, great advice. I also read a few moments ago about how 1 agent figured out the details of the PMI company, phone #, etc. only after the deal had progressed through Equator (BOA) to the point of a promissory note to the PMI company. I would like some advice on locating this info about the PMI company if the seller not longer has their HUD-1 from their home purchase. Is this info easy to get from the servicer or investor before they come into play with the negotiations on the short sale? Would this info be located anywhere else? Thanx again Michael
 

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