Primary Mortgage Insurance
Primary mortgage insurance is typically used when a lender has a loan-to-value limitation on individual mortgage loans from a regulatory or internal risk management standpoint. With primary mortgage insurance, the frequently chosen coverages are “standard” or “amortising.”
Standard Coverage
PMI Europe insures either a percentage of the loan amount or a fixed exposure amount. This option provides the most coverage over the life of the loan.
Amortising Coverage
PMI Europe insures a portion of the loan above a certain loan to value. Effective coverage declines over time as the loan to value of the loan decreases through principal payments by the borrower. This option can be a very cost-effective solution to internal or regulatory risk requirements.
Coverage level and claimable expenses can be adapted to each lender’s specific needs.
