The PMI Group today launched a foreclosure prevention website aimed at educating at-risk homeowners about their alternatives as record losses continue to rattle mortgage insurance companies nationwide.
The site looks to minimize the effects of the mortgage crisis by urging homeowners to consider all of their options before walking away from their homes, citing a recent Freddie Mac survey in which more than half of borrowers failed to make contact with their mortgage lenders before foreclosure occurred.
The site features a Q&A section regarding the potential negative impact of a foreclosure along with two videos that highlight workout programs and a how-to for selling a home to avoid foreclosure.
“Private Mortgage Insurance (PrivateMI) is not a consumer product, it is insurance for the lender in the event of borrower default, but the way the PrivateMI industry is built, regulated and reserves for losses, aligns our best interests with those of the borrower,” John Jelavich, Vice President of Homeownership Preservation Initiatives, wrote in a statement to TheTruthAboutMortgage.com.
“We hope that the content on the web site, and on YouTube, motivates borrowers enough to reach out and ask for help.”
Recently, the PMI Group issued new streamlined guidelines for the modification of insured loans and expanded the authority of its servicing partners as part of its ongoing home preservation efforts.
On May 12, the company swung to a $274 million first-quarter loss after its U.S. mortgage insurance unit incurred a net loss of $172.5 million due to increased claims, larger claim sizes, and steeper loss reserves.
Shares of PMI group were down 16 cents, or 2.78%, to $5.60 in afternoon trading on Wall Street, well off their 52-week high of $50.39.