A mortgage insurance agency, also known as a private mortgage insurance (PMI) provider, plays a crucial role in the home lending market. Its primary mission is to mitigate the risk for lenders who issue mortgages with a low down payment (typically less than 20% of the home's value). By insuring a portion of the loan, these agencies enable more individuals to achieve homeownership with less upfront capital. The borrower typically pays the premium for this insurance, which is included in their monthly mortgage payment. This service facilitates a more accessible and stable housing finance system.

Founded in

United States