MGIC to Insure Mississippi GOT Mortgages

Mortgage Guaranty Insurance Corp., Milwaukee, has announced that it will insure mortgages under a Mississippi Home Corp. lease-to-own program for people with impaired credit.Under the Get On Track program, prospective homeowners can move into a home during a lease period while getting their finances in order, MGIC said. They identify a home they would like to own, and MHC buys it, becoming the initial mortgagor. Freddie Mac has agreed to buy the mortgages. MGIC said it will insure such mortgages and waive a premium adjustment that is typically applied when the mortgagor is not the occupant of the property. "Because the focus of the GOT program is to help individuals improve their credit so that they can obtain prime-priced homeownership, we determined that GOT mortgages in which MHC is the borrower should not be subject to the usual 'investor loan' risk premium," said Geoffrey Cooper, MGIC's director for emerging markets. "GOT represents a very prudent approach to helping borrowers with impaired credit get on the right path to homeownership." MGIC can be found online at http://www.mgic.com.