PHILADELPHIA - Commonwealth Mortgage Assurance Co. has introduced a mortgage insurance product that does not require an initial premium payment at closing.

The so-called Deferred Monthly Program requires the lender to inform Commonwealth when the borrower's first loan payment is due. The lender then collects the initial insurance payment with the mortgage payment, and Commonwealth bills the lender 10 days later.

"As the next refinance wave approaches, CMAC's Deferred Monthly Program will help streamline programs and give originators a competitive edge," said Douglas J. MacLeod, senior vice president. "CMAC's new program is the most cost-effective vehicle offered to cost-conscious borrowers."

Even though no initial payment is due upon closing, Commonwealth covers the loan automatically from the closing date.

Mr. MacLeod added that servicing is streamlined because the program minimizes mortgage insurance escrow accounts.

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