Typically the buyer covers the cost of PMI, but the lender is the PMI company's client and shops for insurance on behalf of the borrower. Lenders usually deal with only a few PMI companies because they know the guidelines for those insurers. This can be a problem when one of the lender's prime companies turns down a loan because the borrower doesn’t fit its risk parameters. A lender might follow suit and deny the loan application without consulting a second PMI company which could leave all parties in an undesirable position. The lender has the difficult task of being fair to the borrower while shopping for the most effective way to lessen liability.
Calculated Risk Analytics LLC dba Excelerate Capital is licensed by the Department of Business Oversight under the California Residential Mortgage License, AZ #0945350, CA RMLA #41DBO‐45150, CO #1165716, HI #HI-1165716, OR #ML‐5363, FL #MLD1579, TX #1165716. NMLS #1165716. 4000 MacArthur Blvd, Suite 800, Newport Beach, CA 92660.
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