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Claiming through Lenders Mortgage Insurance

Monday, April 23, 2012 - Posted by Philip Harvey

Currently sales of properties are often resulting in a loss and possible claims against the two main mortgage insurance companies.

Both Genworth and LMI have similar claim systems with claims broken up into “buckets”.

The difference between the two is Genworth cap their allowed charges will LMI have a case by case look at the action taken and costs incurred. LMI however does have limits set for individual lenders within the contract and these should be looked at by the lender.

In conversation with both they believe that legal action is the last resort and all other avenues should be looked at including mediation/hardship and owner sale of property. In fact one LMI provider stated that if they believe the legal action is unwarranted and there is a better way to resolve the issue they will step in to try and resolve issues.

Below is a list of Genworth current  max charges as stated above LMI have no max charges unless specified in contract with lender.


                   GENWORTH  LMI  LIMITS




Legal Fees max. $10,000





Rates – Municipal   n/a






Rates – Water    n/a






Strata Levies   n/a






Registration fees on discharge of mortgage   n/a




FID & Other State Taxes n/a





Agent Sale Fees max $2,000 + 3%, up to $25,000



Valuations max. $500





Repair and protection max $3,000




Property Presenters max. $1,750



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