Freedom Mortgage, a privately held, full-service mortgage lender licensed in all 50 states, has expanded its mortgage insurance options for borrowers. The company, which has relationships with the country’s private mortgage insurance providers, has increased its number of approved mortgage insurance providers in an effort to help more borrowers qualify for mortgages in the current purchase-driven market. Here’s why this is innovative:
Mortgage insurance is required on conventional loans for first lien mortgages with a loan-to-value ratio greater than 80 percent. It protects the lender against losses in the event that the subject property goes into foreclosure and the lender is unable to recover its costs after the REO property is sold.
There are seven private mortgage insurers in the U.S. Having recently partnered with National MI, Freedom Mortgage now offers mortgage insurance through five of the carriers. The other four include Genworth, MGIC, Radian and United Guaranty.
Most borrowers are not aware that while it’s customary for lenders to select the mortgage insurance provider for borrowers, each borrower is entitled to use the mortgage insurance provider of his or her choice, as long as that provider is approved to do business with the lender. Freedom Mortgage has approved partnerships with most of the mortgage insurance providers giving borrowers with a wide array of choices.
“A 20 percent down payment can keep a lot of otherwise qualified borrowers out of the market,” said Stanley Middleman, CEO of Freedom Mortgage. “At Freedom, we are very serious about helping our customers achieve the dream of homeownership. In addition to helping them to secure the most suitable mortgage, we also help them to secure the most suitable mortgage insurance.”
I wish more lenders looked to innovate in this way. Speaking of innovation, the deadline to get your application in to be considered for our Top Innovation Awards is today. You can apply for free online HERE. You deserve to get recognized for your efforts!
About The Author
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at email@example.com.