Question
PMI COMPANIES OVER RULING AN APPRAISAL?
I'm reading questions here that PMI companies are now inserting their opinions of value over an appraisal? They are an insurance company, not a lender, not an appraiser. What gives them the right to interfere in a real estate transaction?
3 weeks ago - 2 answers
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I saw the same question and was pretty shocked by it, but remember that they are insuring against a loss so why shouldn't they question the validity of an appraisal. What most agents/brokers/individuals don't realize is the loss that most Mi companies are experincing now. Their losses are right up there with what the lenders and investor are experincing. If a home goes to foreclosure, they make a full claim payment, this could be 50, 100, ever 150k to the investor/lender. monthly mi payments of 100.00 does not cover a full claim payment, especially with mortgages defaulting within 36 months of origination. They are completing their due diligence as they should have been years ago. Maybe if this would have happened years ago, we wouldn't be in this position
Source(s)
short sale negotiator
by Big daddy
2 weeks ago
Asker's Rating: 
Other Answers
The PMI company is telling my mortgage lender that there are not sufficient comparable homes sold in the area... even though the licensed real estate appraiser found 3 comps.
by Stephen D- 3 weeks ago