Reader Mail: private mortgage insurance?
One Hoboken411 reader is curious about Private Mortgage Insurance companies (PMI’s):
What happened to the PMI companies?
“You know the insurance companies who collected premiums from borrowers to protect the bank from a total loss on a mortgage if the borrower defaulted.
Where did they go?
Did they take the premiums and run?
Are they actually honoring claims that banks are making (hopefully making) when borrowers stop paying the mortgage? Or are the banks just relying on the government? Were there ever any real PMI companies to begin with? Jerry Seinfeld would ask “Who are these people”? Seriously, were those companies real?”
Do any of you have an answer?