Mortgage Indemnity Guaranty

Definition

Mortgage Indemnity Guaranty. Mortgage Indemnity Guaranty (MIG).

Issues and Challenges

See notes from SME Review and in MIG Provider. Applies to securitized pool, insures the lender. Additional note (IBM): there is a further application of this. When a lender takes a loan which is a where the value of the loan is greater than 80% of the value of the property, at that point it is required for the lender to also get a private mortgage insurance, so they are paying separately for the mortgage insurance so that if the borrower defaults above 80% then the mortgage insurance pays the loss. In the Loan Party Insurer (new "Party" type) you have Loan Party Insured Ratio (e.g. the 80% in the example above). These are different situations but the same principle. So this needs to be modeled for both. 30 June: Is this Lender or Borrower? since you have one lender and one borrower in a single loan, but multiple lenders in the case of packaging this up for a security - there are then multiple lenders and multiple borrowers. A similar kind of insurance exists in the one lender one borrower scenario i.e. the mortgage loan itself. There are two concepts here. the MIG thing was for bundling these. the MIG might apply across multiple contracts, but still be a fact about "the" contract? The notes about 80% above (IBM) are about the individual loan. ACTION: Tidy this up.

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.