[19971217]97-373E_私人抵押保险：取消选项.pdf

Congressional Research Service The Library of CongressCRS Report for CongressReceived through the CRS Web97-373 EUpdated December 17, 1997Private Mortgage Insurance: Cancellation OptionsBruce E. FooteAnalyst in HousingEconomics DivisionSummaryIf home mortgage borrowers are unable to make downpayments of at least 20%,lenders generally require that the borrowers obtain some type of mortgage insurance.In response, the borrowers either obtain private mortgage insurance (PMI) frommortgage insurers or, when eligible, insurance from a federal government agency. Inrecent years, the majority of borrowers who need mortgage insurance have obtainedPMI.The purpose of PMI is to protect the lender or secondary market investor from lossif the borrower defaults on a low-downpayment loan. As the borrowers equity in theproperty increases, the risk of default decreases. The lenders or investors risk of lossdecreases as the borrowers equity increases, and a point is reached where the mortgageinsurance is no longer justified by risk.Reportedly, however, there is widespread industry practice of requiring andcollecting mortgage insurance premiums from borrowers when it is no longer necessary.In some cases