Borrowers with negative equity are being paid by The PMI Group Inc. to keep their loans current.
The Walnut Creek, Calif.-based firm announced on Monday a new program for borrowers with loans that exceed 100 percent loan to value.
Dubbed RH Rewards, the program — which costs nothing for the borrower — is being launched by PMI-subsidiary Homeowner Reward Co. with the help of Loan Value Group LLC.
In order to qualify for the program, PMI must carry mortgage insurance on the mortgage.
The mortgage insurer hopes the program will help support sustainable homeownership in some of the nation’s hard-hit real estate markets.
“This unique program addresses a serious problem for many homeowners who find that factors outside their control — particularly lower home prices in their cities and neighborhoods — have left them owing more on their mortgages than their homes are currently worth,” the news release stated. “RH Reward seeks to address this problem through an incentive-based program that offers eligible homeowners a cash reward for staying current on their mortgages.”