They can drop their private mortgage insurance coverage when they reach 20 percent equity in their homes, either through paying down the principal or home price appreciation.
Fannie and Freddie could save consumers a lot of money, say industry experts, by reducing or getting rid of the add-ons and deepening their mortgage insurance coverage.
But when loans became delinquent or sank into default, many mortgage insurers rescinded the coverage, contending that losses were a result of lending fraud or misrepresentations.
If ever there was a time for systemic reform, now is the time for our leaders to make the most compelling case for comprehensive health care access with huge dollar savings in the face of devastating economic crisis and its ripple effects -- rampant job layoffs with lost health coverage, escalating mortgage foreclosures, and failing auto and other U.S. industries.
To get more ideas about the rules, I called two people who I thought would be at opposite ends of this debate: Mr. Penny, the whistle-blower, and Ed Delgado, chief operating officer of Wingspan Portfolio Advisors, which as a servicer for banks monitors insurance coverage on mortgages and handles foreclosures, short sales and other mortgage matters.
Domestic partners must be at least 18 years old and be able to provide an affidavit attesting to their relationship along with two documents, such as joint checking accounts, mortgages or car leases; coverage on health insurance policies or the designation as a primary beneficiary in a will.
"Even mortgage companies do not require coverage for the shareholder," Mr. Mackoul said.
A number of other critical loopholes made the overwhelming majority of risky lending beyond the reach of the CRA: in fact, a study by the Federal Reserve found that 94% of subprime lending during the height of the subprime mortgage frenzy was beyond CRA coverage.
As part of one of the largest urban rebuilding efforts in American history, the agency helped low-income people get home mortgages and to provide insurance coverage for housing and AIDS hospices.
If a person cannot secure coverage, by law his mortgage company is required to do so.
