PMI Reform: Good Intentions Gone Awry
Last April, the House of Representatives overwhelmingly passed the Homeowners Insurance Protection Act (H.R. 607) with the noblest of intentions-relieving the burden of as many as 250,000 home owners who currently pay for private mortgage insurance (PMI), even though their loan agreements may stipulate that such insurance is no longer necessary. Similar legislation, the Homeowners Protection Act of 1997 (S. 318), is now being considered by the Senate Committee on Banking, Housing, and Urban Affairs (Banking Committee).
The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit clevelandfed.org for updates.