90% lend with no LMI

[Gruntus]

For the gurus out there, wondering if anyone has seen a scenario of a 90% lend with no LMI?
total package was $7 mil (3 properties), does LMI stop being offered at a certain dollar value or has someone dropped the ball on this one?

 

[Rolf Latham]

Hi Gruntus

In the current climate even 1 mill per security at 90 % with Paid LMI is a bit of a struggle.

2 mill or so wont be easy to place unless there is a sensattional person behind it


ta
rolf

 

[Gruntus]

thanks Rolf, this was actually a loan written in early 2008, and it seems very odd to me that no LMI was paid. do you think it would be standard practice to not have LMI at that level or do you think it would not have been approved for LMI? thanks in advance Grant

 

[Rolf Latham]

Hiya

To my knowledge both NAB and CBA have policies where they will write a deal without LMI if the app is very strong.

WBC also, through some of its special partners

I dont feel any insurer would take on exposure to one entity at that LVR

so the lender must have passed it without LMI.

ta'rolf