Because they are 'for profit' enterprises and many areas around the country represent a serious threat to that 'for profit' business. Haven't you read the news? Look at falling values in these areas. Look at default rates and high inventories. This is just good business practice. And another reason why the government needs to step in via FHA and VA to get it done.Why are mortgage insurers reluctant to insure home loans?
They have lost their ^%$%%'s in bad loans. So they have gone to a statistical overlay that shows where they had the most losses. Not only have they decided NOT to insure, but they have increased their premiums everywhere and reduced the LTV's on loans they will insure. They are the main reason that there are NO 100% loans anymore.
b/c the industry is in turmoil. everyone speculated on the market and now its coming back to earth.
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