HOW MORTGAGE INSURANCE WORKS
All mortgages carry risk for both lenders and investors. High loan-to-value loans are particularly risky and under current or proposed regulation can attract higher regulatory capital charges. QBE LMI Asia reduces this lending risk and can help lenders obtain both economic and regulatory capital relief. Mortgages insured by QBE LMI Asia -backed by its high ratings-can also be pooled into a mortgage-backed security with reduced subordination to create a safe, liquid, and easily transferable asset.
A QBE LMI Asia program can cover all or part of the following costs of borrower default:
- Loss of principal
- Delinquent interest
- Legal fees
- Advances made by the lender
- Limited home repairs and maintenance
- Other costs associated with foreclosing and/or selling the property