CUNA Mutual Insurance Group has joined with PMI Mortgage Insurance in a joint venture that will offer mortgage insurance to credit union borrowers.
Creation of the joint venture, to be known as CMG Mortgage Insurance Co.,is aimed at assisting the home financing of low- and moderate-income borrowers. Most mortgage lenders require borrowers who cant pay 20% of the mortgage as a down payment to get private mortgage insurance. And the majority of low- and moderate-income borrowers cant make a 20% down payment. The threshold is set at 20% because studies have shown borrowers with less than 20% invested in a home mortgage are more likely to default.