It appears that job-loss mortgage insurance is offered by several
companies in the UK, but it is less common in the US at this time. In
addition to the GE plan that you've mentioned, I've found several
mortgage protection plans that provide involuntary job loss coverage.
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"Mortgage Payment Protection is making mortgage protection available
to those who qualify. It is designed to protect you from losing your
home and maintain your credit during a period of involuntary
unemployment. Mortgage Payment Protection is backed by the experience
of an A+ Rated (Superior) insurance company. This is not term-life
insurance, credit-life insurance or disability insurance. This is a
much needed and timely product ... at a moderate price."
Mortgage Payment Protection, Inc.
http://www.mortgage-payment.com/index.shtml
"MortgageGuardian is a simple straight-forward product that provides
the lender/servicer timely and consistent monthly mortgage payments
(PITI) when a homeowner has become involuntarily unemployed.
Aside from the preservation of a borrower's credit, MortgageGuardian
addresses loan delinquency and potential defaults by providing a
safety valve for job loss situations that could quickly escalate and
affect the long-term security of the loan... All types of home loans
are eligible."
American Financial Support: Mortgage Payment Protection
http://www.amfinancial.net/page487824.htm
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The following job loss mortgage insurance plans relate to mortgages
held by certain lenders:
"Involuntary Job Loss Mortgage Payment Protection
Provides eligible borrowers and co-borrowers with involuntary job loss
mortgage payment coverage in the event of job loss due to strikes,
lockouts, individual and mass layoffs, or loss of income due to
business failure or bankruptcy.
Eligible borrowers would receive up to six (6) months mortgage loan
payments. Coverage provides for a maximum benefit of $1,500 per month
or actual mortgage payment based on monthly obligation at the time of
closing, whichever is less. Coverage period is for twelve (12) months
from loan closing date."
Alliance Housing Assistance
http://www.allianceassistance.org/jobLossDisclosure.html
"Q: Is this like life or disability insurance?
A: No. Job Loss Mortgage payment protection is an involuntary
unemployment insurance that covers involuntary job loss only."
National Housing Foundation, Inc: Frequently Asked Questions About
your Involuntary Job Loss
Mortgage Payment Protection
http://www.nationalhousing.org/Word%20Documents/faq.pdf
"Whether you chalk it up to market savvy or just pure luck, the fact
remains that in 1999 when Bank of America first began planning to
offer unemployment coverage in its new Borrowers Protection Plan,
unemployment was near an all-time low. Yet when the nation's
third-largest bank launched the new program in the middle of 2001, the
job market was much more uncertain, and unemployment was the highest
in a decade. In fact, the post September 11 economy has been an ideal
climate to offer customers a menu of new options for debt protection
coverage on a variety of mortgage and other installment loans, and
Bank of America is currently one of the few lenders making debt
protection products available to their installment loan customers.
Bank of America customers can choose single or joint coverage and
select between three debt protection plans: disability and accidental
death; involuntary unemployment and accidental death; and debt
protection for all three events. The bank cancels the loan balance if
the borrower accidentally dies and pays the monthly balance for a
specified period of time if the borrower has a covered disability or
becomes involuntarily jobless."
CSC Financial Services: Bank of America Launches Customer-Friendly
Borrowers Protection
http://www.csc-fs.com/CSTUDY/Downloads/BOA.pdf
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These articles about job-loss mortgage insurance may interest you:
MSN Money: Should you buy job-loss mortgage insurance?
http://moneycentral.msn.com/articles/banking/basics/8151.asp
Deadline News: Job-Loss Mortgage Insurance
http://www.deadlinenews.com/joblossmi102403.html
Pittsburgh Post-Gazette: The pros and cons of buying job-loss mortgage insurance
http://www.post-gazette.com/homes/20030405realcol7.asp
Business Journal: New mortgage insurance protects homeowners against job loss
http://www.bizjournals.com/sanjose/stories/2001/12/03/focus3.html
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Search terms used:
"mortgage payment protection"
"job loss" + "mortgage insurance"
"unemployed" + "mortgage insurance"
"unemployment" + "mortgage insurance"
"involuntary unemployment" + "mortgage"
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Unless you are looking to refinance, it seems to me that your best
options are GE (which you mention in your question) and MPPI.
Information about MPPI's plan is available on their website (the first
link in my answer). For additional info about MPPI's MortgageGuardian
coverage, you can email MPPI at this address:
teri@mortgage-payment.com
If your lending institution would like more information about MPPI's
MortgageGuardian plan, MPPI has a lenders' information page which can
be accessed after some identifying data is submitted here:
Mortgage Payment Protection, Inc.
http://www.mortgage-payment.com/lenders-info.shtml
I hope this helps! If anything is unclear, or if a link does not
function, please request clarification; I'll be glad to offer further
assistance before you rate my answer.
Best regards,
pinkfreud |
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