Mortgage Insurer Profits Suffer on New Loan Types

Published on:
12 September 2006 at 10:19 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00014260-mortgage-insurer-profits-suffer-on-new-lo/

By Aleksandrs Rozens, Reuters

As more Americans buy larger homes with less money for a down payment, they’re turning to loans that let them avoid mortgage insurance, chipping away at the profits of some insurers, according to analysts.

Milwaukee-based MGIC Investment Corp. on Thursday reported a rise in quarterly earnings, but its Chief Executive Curt Culver warned that low interest rates and strong home price gains continue to hurt the company’s results.

Consumers are borrowing more with loans that let them put less money down and avoid the costs of mortgage insurance that is usually required of home buyers who put down less than 20 percent of the purchase price.

For this complete story, please visit Mortgage insurer profits smart from new loan types.

Mortgage Insurer Profits Suffer on New Loan Types

Unknown Author

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