PRIMARY MORTGAGE INSURANCE
Primary mortgage insurance is typically used when a lender has a loan-to-value ratio limitation from a regulatory or internal risk management standpoint. With primary mortgage insurance, there is a choice of proportional coverage or fixed exposure coverage.
Proportional Coverage
QBE LMI Asia insures a percentage of the loan amount and foreclosure expenses. The coverage percentage remains constant over time.
Fixed Exposure Coverage
QBE LMI Asia insures a portion of the loan above a certain loan-to-value ratio, plus a commensurate portion of foreclosure expenses. Effective coverage declines over time as the loan-to-value ratio of the loan decreases
Coverage level and claimable expenses will be adapted to each lender's specific needs.
In lieu of paying the coverage percentage. QBE LMI Asia may pay the entire claim amount and take title to the property, or pay the lesser of the percent coverage and actual loss.