Proactively manage capital and protect your portfolio with our LPMI single premium plan
Our MI to 89.99% Premium Plan is designed to optimize bank capital under Basel III regulatory requirements:
- This plan was developed as a solution for banks that wish to hold high-LTV loans in portfolio and need to balance capital management with borrower affordability
- Unlike other LPMI singles premiums that provide coverage for the life of the loan, MI to 89.99% coverage expires when the loan is paid down to less than 90% of the original property value
- Coverage levels are less than standard Agency coverage
- Because it’s a thinner, shorter-term layer of coverage, MI to 89.99% premium rates are significantly lower than MGIC’s standard LPMI single premiums
Why would lenders want a thin layer of coverage with a short duration?
- Banks (not credit unions, not mortgage companies) are subject to Basel III risk-based capital requirements
- For mortgage loans held in portfolio (i.e., on the bank’s balance sheet), Basel III requires the bank to hold 8% capital against loans with an uninsured LTV ratio of 90% or more – but only 4% capital if these loans are insured to less than 90% exposure
- With MGIC’s MI to 89.99% product, the coverage level (e.g., 6% cover at 95% LTV) is just enough to result in an uninsured LTV ratio of less than 90%, allowing the bank to hold half as much capital as it would for the same loan without MI
- Credit unions may also derive similar benefits from this plan
Complete the form below to get a closer look at the benefits of MI to 89.99% Premium Plan and MGIC's Portfolio PlaybookTM products.
Portfolio Playbook™ is an MGIC trademark.
Get started with these MI to 89.99% Premium Plan resources:
Discover more about our Portfolio Playbook products
Portfolio Playbook is a suite of mortgage product solutions designed to help pros like you. To uncover the benefits of enrollment in MGIC's Portfolio Playbook program, complete this form:
You might also like
-
Self-employed borrower worksheets
Cash flow analysis using editable, auto-calculating worksheets.
-
MGIC Underwriting Guide
The policies, procedures and guidelines we use to evaluate loans for mortgage insurance.
-
Order MGIC mortgage insurance
Use the Loan Center to order mortgage insurance quickly and easily.
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.