Freedom Mortgage Corporation has expanded its mortgage insurance options for borrowers. The company, which has relationships with the country’s private mortgage insurance providers, has increased its number of approved mortgage insurance providers in an effort to help more borrowers qualify for mortgages in the current purchase-driven market.
Mortgage insurance is required on conventional loans for first lien mortgages with a loan-to-value ratio greater than 80 percent. It protects the lender against losses in the event that the subject property goes into foreclosure and the lender is unable to recover its costs after the REO property is sold.
There are seven private mortgage insurers in the U.S. Having recently partnered with National MI, Freedom Mortgage now offers mortgage insurance through five of the carriers. The other four include Genworth, MGIC, Radian and United Guaranty.
Most borrowers are not aware that while it’s customary for lenders to select the mortgage insurance provider for borrowers, each borrower is entitled to use the mortgage insurance provider of his or her choice, as long as that provider is approved to do business with the lender. Freedom Mortgage has approved partnerships with most of the mortgage insurance providers giving borrowers with a wide array of choices.
“A 20 percent downpayment can keep a lot of otherwise qualified borrowers out of the market,” said Stanley Middleman, CEO of Freedom Mortgage. “At Freedom, we are very serious about helping our customers achieve the dream of homeownership. In addition to helping them to secure the most suitable mortgage, we also help them to secure the most suitable mortgage insurance.”