For the reasons outlined below, we expect the FHA and the VA to have the greatest involvement with lower-income and black or Hispanic borrowers, Fannie Mae and Freddie Mac somewhat less involvement, and the PMI companies the least.
To a limited extent, PMI companies can price risk by charging higher premiums to borrowers with certain credit characteristics.
Some factors, however, suggest that PMI companies may be more likely than Fannie Mae or Freddie Mac to insure a higher proportion of mortgages extended to lower-income borrowers.
Profit-oriented purchasers or insurers of mortgages, such as Fannie Mae, Freddie Mac, and PMI companies, guard against adverse selection by setting stricter underwriting standards than they would if they had full information about the risk of the mortgages they buy or insure and by closely monitoring the adherence of mortgage originators to these standards.
Unlike the estimated and volatile preliminary GDP data, the message from the PMI
surveys is clear.
Cautionary Statement: Statements in this document relating to PMI
Australia that are not historical facts or that relate to future plans, events or performance are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995.
PMI is proud of the strong partnership we have developed with Mission of Peace," said Jean Garrison, Expanding Markets Consultant for PMI Mortgage Insurance Co.
PMI has successfully implemented Gateway neighborhoods in cities across the United States, including Los Angeles, CA, Houston, TX, and Chicago, IL.
Tony Porter, Executive Vice President and Managing Director of International Markets for PMI Europe commented, "Our experience shows that the European market is not only one of the fastest growing markets worldwide, it exhibits untapped potential.
PMI Europe announced the opening of its first German office, located in Frankfurt, Germany's financial center, and the appointment of Claudia Schneider as its Country Manager for Germany, in April.
PMI Mortgage Insurance Company Limited ("PMI Europe") serves the special needs of European residential mortgage lenders and its investors by offering a variety of mortgage credit enhancement solutions tailored to accomplish regulatory capital relief, risk management, product/lending expansion and secondary market access.
These forward-looking statements include PMI's expectations with respect to PMI Europe.