Consumer Law

Where is the mortgage insurance?

By Richard Alderman

by Richard Alderman

As a general rule, we read blogs for information. It is a great way to find out what is going on and who is doing what. But a blog is also a great way solicit information--and that is the point of this post.

I may be showing my ignorance, but I don't understand how mortgage insurance (PMI) fits into the recent mortgage crisis. I assume most, if not all, of these mortgages are insured. If that is the case, one of two things should happen. Either the lenders should not take the losses they are reporting, or, the insurers should go bankrupt. If it is the later, what happens to the insurance that everyone else has been paying for?

I am sure that someone reading this has much more knowledge about this subject than I do, and hopefully, he or she will post a reply comment explaining how PMI fits into the mortgage crisis equation.

Full post as published by CL&P Blog on January 31, 2008 (boomark / email).