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 CHICAGO, Oct. 26 /PRNewswire/ -- Buyers can save up to $1,000 in closing costs and reduce the ongoing cost of home-ownership by an equal amount with a new form of mortgage insurance being offered by Amerin Guaranty Corp.
 Lender-paid mortgage insurance from Amerin has won wide acceptance since its introduction a few months ago. It currently is used by 20 leading mortgage lenders nationwide and 36 additional ones have qualified to do so.
 Lender-paid insurance can eliminate all closing costs related to mortgage insurance, cutting the amount of cash buyers need to get into their new home by as much as $1,000. That is welcome news for real estate professionals as well as consumers. It provides buyers with a tax advantage and reduces the overall cost of home ownership by perhaps another $1,000 over the life of the average mortgage. And it offers choices to lenders that can mean significantly increased profitability.
 One Amerin feature certain to be welcomed by real estate professionals and their customers is that lender-paid mortgage insurance is fully delegated. That means the loan decision is entirely up to the lender. There is no delay while the decision is referred to an insurance company. This can reduce the wait by up to one third.
 In the past, mortgage insurance has been purchased by home-buyers, but it aci?nsured lenders. Amerin's new lender-paid mortgage insurance represents something completely different. Lenders buy the insurance at wholesale prices, and the benefits are shared with borrowers.
 Amerin can sell insurance at wholesale prices because it uses state-of-the-art technology and streamlined marketing techniques to create significant savings. Lenders can use these savings to increase profitability. And lender-paid insurance is a "win-win" product because of its tax advantage and cost savings for consumers.
 "What we have done, essentially, is to revolutionize the whole concept of mortgage insurance with the first genuinely new idea in 30 years," said Gerald L. Friedman, Amerin chairman and chief executive officer. "We have dramatically changed the structure of mortgage insurance and the way it is marketed. We have built a better mousetrap."
 Amerin is the nation's first wholesaler of lender-paid mortgage insurance. The Chicago-based company was launched a year ago with help from a team of investors that includes Aetna Life Insurance Company, General Motors Pension Plans, J.P. Morgan Capital Corporation, Leeway & Co. and Morgan Stanley.
 Some of Amerin's competitors have responded to its introduction of lender-paid insurance with a variant of their traditional borrower- paid product. This "monthly pay" insurance does get some -- not all -- closing costs off the table by repackaging them into monthly installments. But it offers no tax advantage, does not lower the overall cost of home ownership and offers no fresh options to lenders.
 "Monthly pay is basically a warmed over version of traditional borrower-paid mortgage insurance," said Stuart Brafman, Amerin president and chief operating officer. "There's nothing especially new about it. It's a slightly altered version of the same thing we've had for 30 years."
 Mortgage insurance protects lenders against borrower default. It is required with every mortgage whose loan-to-value ratio is 80 percent or higher. For example, in the case of a $100,000 mortgage, insurance is required unless the down payment exceeds $20,000.
 Lender-paid mortgage insurance from Amerin is fully approved by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp.
 -0- 10/26/93
 /CONTACT: Mike Robinson of Ogilvy Adams & Rinehart, 312-988-2818/

CO: Amerin Guaranty Corp. ST: Illinois IN: FIN SU: PDT

TW -- NY065 -- 6785 10/26/93 12:43 EDT
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Publication:PR Newswire
Date:Oct 26, 1993

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