You have missed the purpose of this program. While I cannot speak for Commissioner McLaughlin, the recommended program is not mortgage insurance. In fact, one of the benefits of the new program is that the guarantee helps borrowers avoid having to pay mortgage insurance. MI can add a lot to the monthly payment. The guarantee helps eliminate it. The program also allows the borrower to qualify for a lower interest rate because they Loan to Value Ratio is at 80%.
Secondly, while Wells Fargo Mortgage may be a participating lender in this program, they are far from the only participant. Any mortgage lender across the United States can participate in this program if they so choose. I have received calls from at least 3 lenders expressing interest in the program. There is no foul afoot here on this program. The program is designed to help more families get into homes with lower monthly payments. The guarantee is intended to incent lenders to give mortgages to people that might not normally qualify. A large number of the people helped by a program of this nature will be lower income minority families that have been denied the opportunity to become homeowners before. Barb Lickness NRP Staff ===== "Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it's the only thing that ever has." -- Margaret Mead __________________________________________________ Do you Yahoo!? Yahoo! Platinum - Watch CBS' NCAA March Madness, live on your desktop! http://platinum.yahoo.com TEMPORARY REMINDER: 1. Send all posts in plain-text format. 2. Cut as much of the post you're responding to as possible. ________________________________ Minneapolis Issues Forum - A City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:[EMAIL PROTECTED] Subscribe, Unsubscribe, Digest, and more: http://e-democracy.org/mpls
