Flagstar to offer Job Loss Protection product on low downpayment mortgages – NMP Skip to main content

Flagstar to offer Job Loss Protection product on low downpayment mortgages

NationalMortgageProfessional.com
Apr 07, 2010

Flagstar Bank has announced a new low downpayment mortgage benefit designed to cover a homebuyer's mortgage payments if he or she becomes involuntarily unemployed. Called Job Loss Protection, the benefit is available at no charge on new loans with mortgage insurance provided by Genworth Financial. Mortgage insurance is required on loans with downpayments of less than 20 percent. "We're happy to work with Genworth to offer this enhancement to our low downpayment loans. It will protect what is often a person's single largest investment — their home," said Bill Robinson, executive vice president of Flagstar's home lending division. "The job loss insurance will provide peace of mind for buyers concerned about the employment situation in today's volatile economy." The program covers a borrower's mortgage payment (principal, interest, taxes and insurance) of up to $2,000 a month for up to six months during their benefit period, with a maximum of three monthly payments per job loss occurrence in the event of involuntary unemployment. Benefits are paid directly to the mortgage company just as if the borrower had made the payment. The borrower vesting period is 60 days after closing, and payments begin 30 days from the date of involuntary unemployment. Coverage stays in place for up to three years after the loan closes and the mortgage insurance remains in place. Most unemployment events covered by state unemployment benefits are covered under the new Flagstar Bank program. Seasonal, temporary and voluntary jobs or self-employment are not covered, however. For more information, visit www.flagstar.com.
Published
Apr 07, 2010
Equifax To Tell Lenders Of Potential Errors In Credit Scores

About 12% of customers may have been affected, according to a source.

Industry News
May 27, 2022
Lakeview Loan Servicing Faces Multiple Lawsuits Over Data Breach

At least a dozen civil lawsuits have been filed against the company, all seeking class-action status.

Industry News
May 26, 2022
Homepoint Rolls Out Jumbo ARM Loans

Homepoint's Jumbo ARM is a strategic addition to the company’s expanding jumbo portfolio.

Industry News
May 25, 2022
Planet Home Lending Expands in Oregon

New team in Portland focuses on construction lending in the Northwest.

Career
May 24, 2022
PennyMac Cutting 207 Jobs

A wide variety of positions are affected.

Industry News
May 24, 2022
Loan Officer Charged With Bank Fraud, Identity Theft

If convicted, she faces up to 30 years in federal prison on each bank fraud count and a mandatory consecutive 2 years’ imprisonment.

Industry News
May 24, 2022