PMI: mortgage backstop from the Alger Report to Dodd-Frank
Journal of Financial Regulation and Compliance
ISSN: 1358-1988
Article publication date: 4 February 2014
Abstract
Purpose
The purpose of this paper is to provide a historical perspective and going-forward assessment of the importance of private mortgage insurance (PMI) entities in the residential-lending landscape in the USA.
Design/methodology/approach
Financial data from the PMI entities and federal income tax data were analyzed to comment on the importance of the PMI entities in the historical and current mortgage-lending environment.
Findings
PMI entities played a critical role in expanding the population of mortgage candidates for financial institutions. Through the guarantees offered by PMI entities, financial institutions granted loans to individuals who otherwise would not have qualified for mortgages.
Originality/value
No prior research has assessed the overall historical role played by these primary PMI entities.
Keywords
Citation
Neidermeyer, A., E. Boyd, N. and Neidermeyer, P. (2014), "PMI: mortgage backstop from the Alger Report to Dodd-Frank", Journal of Financial Regulation and Compliance, Vol. 22 No. 1, pp. 43-48. https://doi.org/10.1108/JFRC-02-2013-0003
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited