Private mortgage insurance helps lenders by providing protection against the risk of a borrower defaulting on a mortgage loan. Generally, private mortgage insurance covers a portion of the expenses and outstanding loan balance that aren't recovered when a borrower defaults and a loan is foreclosed.
United Guaranty provides responsible risk management with its risk-based pricing model, which prices the mortgage insurance premium according to the unique risk of each loan.
In addition, it helps borrowers buy a home sooner and with less money toward the down payment on their mortgage. In the U.S., for example, qualified buyers could put down as little as 5 percent on a loan with mortgage insurance, compared with the 20 percent most mortgage investors require. Saving for a large down payment can be nearly impossible for many first-time or move-up home buyers. By providing insurance on loans with smaller down payments, United Guaranty can help make home ownership a reality sooner—as much as 10 years sooner for most borrowers.