Fewer borrowers will qualify for mortgage insurance, due to tightened restrictions following the subprime meltdown.[CNNMoney]
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This is a good thing. As much as I’d love to see everyone out there own a nice house, the fact is that not everybody can afford it, and when lenders give them the money anyway, it spells trouble for everyone.
Agreed (with freshyill), and most of their “new” rules they are implementing are simply the same rules that were always in place prior to the market bubble over the last five years.
What’s interesting is their new LTV ratio is now 95%, that means 5% down. Even pre-meltdown the old minimum was 3% down.
Hint: insurance companies aren’t stupid and want your money. If they won’t sell you a policy for a property or transaction, you probably shouldn’t be buying that property.