Jumbo originations are at their highest level since 2007, and private mortgage insurance is on the rise.

With home values still rising, lenders are starting to loosen mortgage requirements and open themselves up to more private jumbo loans. Insurers are following along.  

Jumbo loans are those greater than $417,000 in less expensive markets and greater than $625,500 in high-cost markets. Consequently, insurers are lowering costs and increasing the size of mortgages they will cover.

Genworth Mortgage Insurance raised the maximum mortgage amount it will cover to $850,000 in October, up from $625,500. In December, Mortgage Guaranty Insurance Corp. (its parent is MGIC Investment CorpMTG), followed suit and raised its own cap to $850,000, from $750,000.

Both companies said they will look at even bigger mortgages on an individual basis.

United Guaranty, a subsidiary of AIG, which already insures mortgages up to $850,000, offered a limited program for loans of up to $1 million. Radian Group (RDN) is considering breaching the $850,000 watermark.

Most Popular Articles

NAR bans “pocket listings”

The National Association of Realtors board of directors voted 729-70 on Monday to ban the controversial practice of “pocket listings.”

Nov 12, 2019 By

Latest Articles

Congressional vote on “de facto QM Patch” postponed

The House Financial Services Committee postponed a vote on H.R. 2445 on Wednesday, a bill that would fix the so-called QM Patch that’s set to expire in early 2021.

Nov 15, 2019 By