MI Benefits Lenders – Now and Later
MI is the most secure way to help borrowers get into homes sooner. And help keep them there. MI is good for the lender. Good for the borrower.
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Borrower-paid MI premiums are 100% tax-deductible through 2010 for eligible borrowers with adjusted gross incomes up to $100,000.*
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MI is secure. In the event of borrower default, PMI-insured loans reimburse (subject to conditions and limitations of the MI policy):
- Principal and interest
- Expenses
- Legal fees
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MI is profitable. Investors prefer loans backed by guarantees. MI gives you more liquidity when reselling.
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MI helps build volume. PMI's tiered pricing structure helps build volume by offering attractive rates for higher-credit score borrowers.
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MI facilitates capital relief. Higher LTV loans on your books may increase your credit enhancement requirements. By insuring these loans, you can potentially meet lower requirements.
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PMI supports loss mitigation efforts. PMI offers innovative programs to preserve homeownership, including supplementing your efforts by contacting and counseling unresolved delinquencies in the later stages of default. PMI also led the industry in partnering with Consumer Credit Counseling Services (CCCS) of San Francisco to assist servicer efforts in reaching “no contact” borrowers. Learn more.
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PMI is knowledgeable. Look to PMI for intelligence on market trends and outlooks, available online in our monthly Housing & Mortgage Market Report (HaMMR) and quarterly Economic and Real Estate Trends (ERET) report -- regularly featured in leading media such as The Wall Street Journal, CNBC and CNN.
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*Based on transactions closed in 2009-2010 and borrower-paid MI premiums allocable to those years. PMI cannot provide tax advice. Taxpayers should consult their own tax advisors concerning applicability of this new deduction to their particular circumstances under the Internal Revenue Code and the laws of any other taxing jurisdiction. This information is not intended or written to be used, and it cannot be used, for the purpose of avoiding U.S. federal, state or local tax penalties.
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