NLIC.org

Grace Said:

Private Mortgage Insurance?

We Answered:

PMI does not cover the full exposure of the lender. They are covering the top slice (usually 20% plus some fees. In order for the Lender not to void their claim for the PMI coverage, several things must happen. The lender must manage the default to its completion, usually foreclosure or a workout or short sale. Any agreement short of foreclosure must be approved by the PMI company.