Lender Paid MI
With Genworth’s Lender Paid MI option, the lender pays the mortgage insurance premium instead of the borrower. Lender Paid MI is a risk-based product with 3 FICO buckets and has both Monthly Premium MI and Single Premium MI options available.
Consumer Benefits
Lender Paid MI can be a great choice for borrowers interested in an alternative to traditional borrower paid MI or other loan types.
- Simplicity of one loan, one payment
- Potential tax benefits for those who itemize
- Competitively priced monthly payment
- Removes volatility of variable seconds
Lender Considerations
Lenders must carefully evaluate which option best fits their view of the market and factor in many variables into their decision, including:
- How quickly they believe the loan will prepay
- How to set the interest spread they will charge to cover the LPMI expense
- How much spread is commercially acceptable in the market
- Whether there are any internal system or investor constraints that drive them to use one option over the other
For more information about Lender Paid MI, contact your local Genworth Sales Representative. Not sure who to reach? Try Genworth’s Find My Representative tool.
