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LEXINGTON, Mass. – CUMEX Mortgage Service Center of Lexington has added Mortgage Guaranty Insurance Corp.’s SingleFile program to its menu of mortgage products geared towards new and existing homeowners with excellent credit but who are typically channeled into borrower-financed private mortgage insurance or “piggyback” loans such as an 80/10/10 for loan amounts over the 80% loan-to-value threshold. CUMEX says the new program – Lenders Financed Private Mortgage Insurance (LFPM) – also known as SingleFile, results in a lower monthly payment than many piggyback mortgage structures, while producing the same tax benefits. SingleFile essentially consists of lender-paid mortgage insurance with premium charges discounted by 40-65% off regular borrower-paid insurance. “The mortgage process is already complicated enough for consumers, especially when adding the additional paperwork of two mortgage loans such as a `piggyback’ loan when you can do one loan and assist those high credit borrowers with one loan and one closing,” said CUMEX Mortgage Service Center’s Carrie Strube, VP-director of lending. “The SingleFile program makes complete sense in today’s lending market especially with predictions on the prime rate increasing again. Depending on the level to which the prime rises, a piggyback involving an adjustable HELOC tied to prime could become much more costly than a loan with SingleFile.” According to CUMEX, some of the valued features of the new program are that borrowers will have one loan with lower closing costs, one low monthly payment, maximum tax-deductible interest, and no borrower-paid mortgage insurance. For lenders, CUMEX says SingleFile protects them against default risk on high-ratio loans when insurance is built into the mortgage itself. SingleFile was introduced by MGIC during the fourth quarter 2004, and the company says it recently surpassed the $1 billion mark in new insurance written.

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