Mortgages with PMI past due at alarming rate

It has been said that mortgages with PMI insurance are generally prime loans. Although I doubt the validity of that assessment, the number of borrowers with PMI attached to their loans, and in some form of defualt, continues to rise. Borrowers who opted to carry Private Mortgage Insurance (PMI) on their homes set a record as 61,300 borrowers were at least 60 days or more on their mortgage payments. The 34.7 percent increase in defaults reflects on the inability of home owners to keep current on their loan payments.

Mortgage insurers such as MGIC Investment Corp, PMI Group Inc, and Radian Group Inc were hit hardest by the defaults losing well over half of their stock value this year alone. Generally speaking, those smart enough to refinance for no more than 80 percent of the appraised value of their property are not required to pay PMI.