Tag Archives: Mortgage Insurance

Mortgage Insurance and Your Money

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If you own your home, do you know if you are paying out for mortgage insurance each month? Many people don’t. It is often one of those fine details that get lost in all the mess of paperwork and decisions that go into buying a new home. What exactly is mortgage insurance? It is insurance the bank that holds your loan will require in certain circumstances. The insurance doesn’t protect you, the homeowner, from any catastrophe. This insurance only protects the bank if you foreclose on your loan. A typical misconception is the insurance will protect you from losing your … Continue reading →

The Homeowner’s Protection Act (HPA) of 1998

The Homeowner’s Protection Act (HPA) generally applies to residential conventional mortgage transactions taking place after July 29, 1999. There is however requirements for loans obtained before that date which will be outlined in my next Blog. The HPA laws don’t apply VA or FHA government-guaranteed loans. There are also different requirements for loans classified as “high-risk.” Fannie Mae and Freddie Mac are corporations chartered by Congress to create a continuous flow of funds to mortgage lenders in support of homeownership. The HPA doesn’t outline what a “high risk” loan is; instead it allows Fannie Mae and Freddie Mac to issue … Continue reading →