Private mortgage insurance falls under strict regulations that can change with the political climate and consumer economic considerations. Changes in legal requirements often affect mortgage protection insurance and are important areas to follow for you and your clients.

Mortgage insurance quotes vary for commercial and home mortgage insurance and you need to stay on top of the trends that affect each differently. Whether you sell mortgage insurance or need to purchase protection for your assets, you should take time to follow the news and trends that drive the rates and the newest products that are being offered. Use a variety of sources to follow mortgage insurance news and trends so that you can work with the complete picture.

1. Read mortgage insurance premium articles to keep up with available options.

2. Check with your reliable sources daily for news that will affect mortgage insurance companies.

3. Use the contacts from trade groups for additional PMI news.

Action Steps
The best contacts and resources to help you get it done

Stay ahead of the mortgage life insurance trends

Be prepared to offer clients all the options that are available for their protection, including mortgage life insurance and private mortgage insurance (PMI). Keep your office updated with the latest mortgage insurance calculator software to best serve your clients.

I recommend: Check out the commercial risk and casualty mortgage insurance news as well as other risk products by subscribing to the Insurance Journal. Keep up with the latest national news and trends that are driving the industry and the current headlines at Nation's Building News.

Find the best sources of news that covers mortgage insurance companies

It's important to find a good resource that follows both the governmental regulations and the trends in mergers within the industry as well as consumer facts and issues. Once you do so, you should check it daily to make sure you don't miss any important announcements.

I recommend: Realty Times is a good source to follow trends within the industry that go beyond the headlines. Insurance News Net will keep you in the loop with regulatory and other important headlines. You can sign up online for a free email alert to breaking news.

Join groups to network with other mortgage protection insurance companies

Trade groups are great places to hear about the latest mortgage insurance developments even before they hit the press. Build relationships that will lead to referrals for your insurance company and meet with other Realtors and developers in the field who can keep you updated with industry trends.

I recommend: The Mortgage Insurance Companies of America provides the latest news and industry updates so you can stay on top of the activity. You should also look into joining your local mortgage brokers group, such as the California Association of Mortgage Brokers, to find new networking opportunities.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  As part of your news gathering effort, check the websites of competing mortgage life insurance companies to find out what kinds of services they are offering and which products they're selling.

When it comes to mortgage insurance, the choices and requirements from lender to lender are complex and widely varied. Understanding the basics of mortgage insurance and what each different type of policy provides can help make choosing the right mortgage protection insurance product easier for yourself or your business.

Private mortgage insurance is designed protect your lender in the event of a default. Also know as PMI, this type of insurance is required by the Federal Government. PMI is automatically figured in to your mortgage payment if your loan is greater than 80% of the value of your property.

Mortgage insurance quotes are available from your lender at the time you apply for a mortgage. Although most lenders have preferred companies they work with, it’s never a bad idea to get several mortgage insurance quotes.

Understanding mortgage insurance will:

1. Enable you to eliminate private mortgage insurance as soon as you qualify.
2. Empower your choices with regards to mortgage insurance companies and mortgage insurance premiums.
3. Equip you to make informed choices about the need for mortgage life insurance.
4. Help you determine your eligibility for better mortgage insurance rates.

Action Steps
The best contacts and resources to help you get it done

Research federal laws regarding private mortgage insurance

Understanding your rights as the purchaser of a mortgage when it comes to private mortgage insurance will save you money over the life of your loan. PMI is automatically removed when your principle balance is within the limits of the law, so spending money on an appraisal along the way could end PMI sooner.

I recommend: The Federal Trade Commission and The Money Alert are great resources for easy to understand information on PMI.

Shop a variety of lenders before determining which mortgage company is right for you

Most people go straight to their bank when thinking about a mortgage. Although a bank is a good option, mortgage companies want your business and are ready to compete if they know you're a smart shopper.

I recommend: Rebuild.com and Lending Tree offer fast and easy mortgage comparison shopping. These companies specialize in one-stop mortgage shopping where banks and lenders compete for your business and you can see mortgage comparisons side by side.

Decide if you need mortgage life insurance

Mortgage life insurance is insurance that pays the balance of your mortgage in the event of your death or the death of your spouse. However, if you have adequate whole life or variable life insurance, you may not need the additional coverage.

I recommend: LifeInsurance.com and Advantage Quotes provide not only great information about mortgage life insurance but free quotes and a variety of insurance products for many of your insurance needs.

Find out what you can do to get the best mortgage rates

Financial decisions you make now can determine what kind of mortgage interest rate you qualify for. Cleaning up your credit history, paying off a few debts and getting more into your savings each month makes you a candidate for a better interest rate. This will effect how much you borrow, how long you have to pay it off and may totally eliminate the need for PMI.

I recommend: Buyers Ed. and HSBC North America Military Financial Education Center have great check lists to help you prepare to apply for a mortgage. Each resource gives step by step instructions on how to clean up your credit history, get all your documents in order and qualify for the best rate for your particular situation.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Develop a relationship with a realtor or mortgage company that can give you the most personal service. Look for local companies who are willing to walk with you through the entire process and make sure you're getting the best products and mortgage insurance rates for your unique situation.

While most brokers, Realtors or loan officers you hire should have adequately trained when it comes to mortgage insurance, it never hurts to offer a refresher on the subject. Tailor your training to your employees' knowledge level and amount of training they've already had.

It's also important that potential buyers understand how home mortgage insurance works. Help your clients understand the government-funded FHA mortgage insurance program. Providing the proper training on private mortgage insurance, or PMI, is also a good idea when you first start the mortgage process in case the client ends up having less of a down payment. Start by:

1. Utilizing online government resources to train loan officers or educate clients.

2. Keeping your employees well informed and up-to-date on all new regulations.

3. Planning ahead by educating your potential borrowers.

Action Steps
The best contacts and resources to help you get it done

Go to government websites for valuable mortgage insurance education and training

While many mortgage insurance companies can offer a wealth of educational materials, borrowers may be skeptical about taking advice from a company that is vying for their business. It's better to give your clients a resource they can trust such as a government website.

I recommend: Find out about FHA and PMI mortgage insurance at the Federal Citizen Information Center, or use the U.S. Housing and Urban Development resources section to educate your clients and any employees.

Train your staff on proper mortgage insurance handling

Whether they are discussing mortgage insurance quotes or FHA regulations on mortgage insurance, your loan officers should be well-versed and knowledgeable on the subject. Keep them trained by providing refresher courses and training materials.

I recommend: Genworth Financial offers webinars, or seminars via the web, on several mortgage insurance topics designed to enhance your lending business. They also have a few mortgage insurance videos that can be viewed free of charge. For credit unions, try CMG Mortgage Insurance Company. They offer webinars, seminars and training in select cities across the country.

Get mortgage protection insurance education for your borrowers

Before your clients get a mortgage insurance quote from any private companies, suggest they take the time to research what mortgage insurance is. Go a step further by requiring any potential mortgage seekers to take an online course so you can see their level of understanding prior to processing their mortgage.

I recommend: Send clients to the Bank of America mortgage insurance calculator and online tool so they can apply mortgage insurance information to their potential home cost. Offer your clients a chance to use the Mortgage Guaranty Insurance Corporation online borrower education program. Once they have gone through the information and taken a quick test, you'll have access to their records.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Mortgage insurance rates are usually about a half of a percent of the total home loan value. Because these can add up quickly, borrowers should be educated in the PMI process and given all their options.