Quote:
Originally Posted by Rick Lee
When I was in the subprime biz, we didnt' require PMI on any loans, not 100%, not stated, not No-Doc. Seems to me, the folks who had PMI before the subprime boom would have been able to drop it as soon as their equity got to 20%. And that probably happened pretty quickly once the market heated up.
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The banks aren't eager to drop PMI even if you are well above the 20%. They make it a lot of work get rid of it, and many of the consumers don't even bother trying (mostly laziness I bet).
I wonder what the terms are on the policies for default. When the payments stop, so do their premiums. Does this mean that if the policy is in default, they don't pay out?