Where's the PMI?

[TexbowJ]

Will someone tell me where the PMI (Private Mortgage Insurance) was on all these default/non-performing loans? Might I guess Fanny and Freddy did not require it. It has always been my understanding that 20% down was required to skirt the PMI requirement.

I have not heard this even brought up. Supposedly these loans only make up6% of all mortgages. Something stinks.

[ladrones]

They were 100% financed trough 1st and 2nd mortgages.

[WoJo]

Great question and I can give you the answer. The loan officers were doing 80-10-10 or 80-20 loans and that made them not need PMI. 100% financing is gone and should never have been in the equation. The industry did this to itself. I am a Realtor and we have been shaky our heads for several years not believing everyone that could quailfy for a loan. The joke has been, "if they can fog a mirror they can get a loan."

[1369]

Also regarding PMI, remember AIG? From what I understand they fronted the bulk of the PMI and when they started getting called on the carpet to cover the foreclosures, that's where they got in trouble.

[Landrover]

You were listening to Joe Paggs show today also!
It definitely was something that had not been discussed. We loan $850 Billion for a 6% default rate........what a joke! We are pansies in all of this!!!

[Bill]

Wait until the $850 billion is accounted for. The waste and corruption with the Katrina clean-up will be a joke in comparison. There's aleady guys scheming how many millions of the $850 they can get their hands on.

[tommy1005]

AIG already spent $440,000 on a golf and spa weekend for their execs, *** is that?

[Tommyh]

They just cancelled a Second retreat under pressure from congress and the outcry of the public! This is on top of an additional 38b given to them yesterday! What the he** is going on up there and what can we do to stop it?! the feds are wanting to buy shares in banks as well! we're going to hell in a handbasket and no one on capital hill is listening to us....