Mortgage Insurance

[montana59451]

I currently pay $49 per month for private mortgage insurance. I do not know what company it is paid to. I thought PMI was to protect the lender in the event I don't make my payments and the funds are paid directly to the lender.

If that is the case, then why was B of A was able to set a sale date, and why am I in default? Why would I owe back payments? Aren't they already paid through the PMI policy? Can the bank just not put a claim in? Do I have to make the claim?

What is the purpose of this insurance if it doesn't pay the lender?

[sahm2two]

Originally Posted by montana59451

I currently pay $49 per month for private mortgage insurance. I do not know what company it is paid to. I thought PMI was to protect the lender in the event I don't make my payments and the funds are paid directly to the lender.

If that is the case, then why was B of A was able to set a sale date, and why am I in default? Why would I owe back payments? Aren't they already paid through the PMI policy? Can the bank just not put a claim in? Do I have to make the claim?

What is the purpose of this insurance if it doesn't pay the lender?

Hi, I currently pay PMI...a lot more than you! $310 a month to be exact just for PMI. I was always under the same impression that it was to protect the lender. I would find out who your PMI company is (ours is Guardan Inc).

[montana59451]

How do you find out who your PMI is through. It's not on my BofA online account? And I would guess that if I called them to ask I would probably just get bad info (again!)

[PCBFL]

PMI is insurance for the lender if you default in the loan. It only pays a percentage of the loan to the lender depending on how much equity you had at the time of the loan.

If you did say a 95% typically the coverage was 30%. Example, if you borrowed 100K at a 95% loan then the mortgage insurance will pay the lender 30K if it end up in foreclosure. The mortgage insurance pays nothing to the lender unless it is a foreclosure.

Many mortgage insurance companies will assist in modifications with your lender to save on the payouts. If you do not know who your mortgage insurance company is check in your loan docs when you closed, normally but not always they have a disclosure and it states the MI Company. If not look on the closing statement or settlement statement, sometimes the name is listed on page in the escrow section. If you have mortgage insurance you should reach out to them also and see if they can help push the lender to modify...it saves them $$$$.

[sahm2two]

Originally Posted by montana59451

How do you find out who your PMI is through. It's not on my BofA online account? And I would guess that if I called them to ask I would probably just get bad info (again!)

I know it said it on my closing docs....try to look at them.

[montana59451]

Found it United Guaranty Res. Ins. CO....guess what??? An AIG company