Blog - Michael Inkman

The Rise of Mortgage Payment Protection Insurance

May 13, 2025 by Michael Inkman

For many homeowners, a mortgage is one of the largest financial commitments they will ever undertake. With economic uncertainty, job market fluctuations, and unforeseen life events, many borrowers seek additional safeguards to ensure they can meet their mortgage obligations. One such safeguard that has gained prominence in recent years is Mortgage Payment Protection Insurance (MPPI).

What is Mortgage Payment Protection Insurance?
Mortgage Payment Protection Insurance (MPPI) is a type of insurance policy designed to cover a homeowner’s mortgage payments in the event of income loss due to circumstances such as unemployment, illness, or disability. Typically, these policies provide coverage for a fixed period, often between 12 and 24 months, allowing policyholders time to recover financially without the added pressure of making mortgage payments.

Factors Driving the Popularity of MPPI
Several key factors have contributed to the growing adoption of MPPI among homeowners:

Economic Uncertainty – The unpredictability of the job market, economic downturns, and global financial crises have made homeowners more aware of the risks associated with losing their primary source of income.
Rising Cost of Living – Inflation and increased living expenses mean that many homeowners have less disposable income and limited savings to cover mortgage payments in the event of a financial setback.
Stricter Lending Requirements – Lenders have become more stringent in their lending practices, making it more challenging for borrowers to obtain mortgage forbearance or modifications without demonstrating financial hardship.
Increased Awareness – Financial institutions, mortgage brokers, and insurance providers have actively promoted MPPI as a responsible financial planning tool, leading to greater consumer awareness.
Benefits of MPPI

Homeowners who opt for MPPI can experience several advantages, including:

Financial Security – MPPI provides a safety net that ensures mortgage payments are covered even in the face of unexpected financial hardship.
Protection Against Foreclosure – By maintaining regular mortgage payments, homeowners can avoid default and the risk of foreclosure.
Peace of Mind – Knowing that a policy is in place to cover mortgage obligations can alleviate stress and allow homeowners to focus on recovery from job loss or illness.
Flexible Coverage Options – Many policies offer customizable coverage, allowing homeowners to select plans that align with their specific needs and financial situation.

Considerations Before Purchasing MPPI
While MPPI offers valuable protection, it is important for homeowners to evaluate their options carefully. Some key considerations include:

Policy Exclusions and Waiting Periods – Most policies have exclusions for pre-existing medical conditions or specific circumstances surrounding job loss. Additionally, there may be a waiting period before benefits begin.
Cost vs. Benefits – Homeowners should assess the monthly premium costs in relation to their budget and overall financial plan.
Alternative Protection Plans – Other financial safety nets, such as emergency savings, disability insurance, or income protection insurance, may provide comparable benefits.

The rise of Mortgage Payment Protection Insurance reflects the growing need for financial security among homeowners. As economic conditions continue to fluctuate, MPPI serves as a valuable tool for those seeking to protect their homes and financial well-being. However, homeowners must conduct thorough research and consult with financial professionals to ensure they select a policy that best meets their needs. By doing so, they can achieve greater stability and peace of mind in the face of life’s uncertainties.

What’s Ahead For Mortgage Rates This Week – May 12th, 2025

May 12, 2025 by Michael Inkman

Over the weekend, the recent talks with China and the U.S. about the recent tariffs have been said to be making progress recently in Geneva, leading to restoring some stability across all sectors and markets. The prior week, the FOMC decided not to change the rates and that will likely be the case in the foreseeable future. While having less presence due to the current economic climate, this week’s CPI and PPI inflation data releases remain as important as ever. These reports will offer insight into the recent impact of the trade war and help inform expectations for the near-term economic outlook.

Trade Deficit

The U.S. international trade deficit, including goods and services, widened 14% in March to a record seasonally adjusted $140.5 billion, the Commerce Department said Tuesday, as companies rushed to import foreign products while they were slightly cheaper than they would be with White House tariffs added to the cost. Economists surveyed by The Wall Street Journal had predicted the deficit would widen to $136 billion from $122.7 billion in February.

FOMC Rate Decision

At its May 7, 2025, meeting, the Federal Open Market Committee (FOMC) unanimously decided to keep the federal funds rate unchanged at 4.25% to 4.5%, maintaining the rate at this level since December 2024. The Fed attributed this decision to increasing concerns about rising unemployment and inflation risks.

Primary Mortgage Market Survey Index

• 15-Yr FRM rates saw a decrease of -0.03% for this week, with the current rate at 5.89%
• 30-Yr FRM rates saw no change for this week, with the current rate at 6.76%

MND Rate Index

• 30-Yr FHA rates saw a decrease of -0.03% for this week. Current rates at 6.25%
• 30-Yr VA rates saw a decrease of -0.05% for this week. Current rates at 6.25%

Jobless Claims

Initial Claims were reported to be 228,000 compared to the expected claims of 230,000. The prior week landed at 241,000.

What’s Ahead

Consumer Price Index and the Producer Price Index are set to release next week, highlighting the biggest indicators of the impact of the recent tradewar on the average consumer.

Explaining Mortgage Options for Self-Employed Borrowers with Irregular Income

May 9, 2025 by Michael Inkman

Securing a mortgage can be challenging for self-employed borrowers, especially those with irregular income. Traditional lenders typically rely on W-2s and steady paychecks to assess financial stability, which can make qualifying more complex for business owners, freelancers, and gig workers. However, several mortgage options cater specifically to self-employed individuals, allowing them to secure financing based on alternative income verification methods.

Challenges for Self-Employed Borrowers
Lenders evaluate mortgage applicants based on income consistency, tax returns, and debt-to-income (DTI) ratio. Self-employed borrowers often face hurdles such as:

Fluctuating income that makes it harder to demonstrate financial stability
Tax deductions that reduce taxable income, making it appear lower than actual earnings
Limited W-2 documentation, requiring extensive financial paperwork

Mortgage Options for Self-Employed Borrowers

Bank Statement Loans
Instead of tax returns, lenders assess income based on 12 to 24 months of bank statements. This is ideal for borrowers who maximize tax deductions but maintain strong cash flow.
Profit and Loss (P&L) Statement Loans
Some lenders allow a CPA-prepared profit and loss statement to verify income instead of tax returns. This works well for borrowers with significant write-offs.
Debt Service Coverage Ratio (DSCR) Loans
For real estate investors, DSCR loans focus on a property’s income rather than the borrower’s personal income. This allows investors to qualify based on rental cash flow.
No-Doc and Stated Income Loans
Certain lenders offer no-documentation or stated-income loans, though they often come with higher interest rates and larger down payment requirements.
Traditional Loans with Adjusted Documentation
Self-employed borrowers may still qualify for conventional or government-backed loans (FHA, VA, USDA) by providing two years of tax returns, business financials, and additional documentation.

Improving Mortgage Eligibility

Maintain strong credit, as a higher credit score can help offset income variability
Show consistent deposits in bank statements to strengthen income verification
Lower the debt-to-income ratio by paying down existing debts
Work with lenders who specialize in self-employed borrowers and alternative income verification

While self-employed borrowers may face extra hurdles, there are plenty of mortgage options designed to accommodate irregular income. By understanding these loan programs and preparing documentation strategically, self-employed individuals can successfully secure home financing.

Lee Vanvolkenburg

15:43 23 Nov 23

Michael and his team were wonderful to deal with. They were excellent with communication and always available to answer questions. Thank you all!

williams lovos

22:54 16 Nov 23

We close on the house tomorrow! Thank you David and Michael for making my first home buying a smooth process. I had several out of the ordinary situations that would had easily not been possible to get the loan in the time that they were able to approve it. My wife and I are forever grateful for the work the team did. Thank you again!

Mario Silvestri III

16:45 16 Nov 23

Rex Perkins

16:56 15 Nov 23

Everything had been going well over the past two years since refinancing an existing mortgage. The application process, approval, servicing website, everything had been very smooth, nothing but the best service. I then had a minor issue arise. We had a wind loss claim on our home and, unfortunately, I had put off getting the check cosigned until the last minute. An issue arose as part of a minor miscommunication in terms of where the check was to be forwarded for endorsement.

To make a long story short, I feared that this miscommunication and misdirected check coupled with my procrastination were going to result in the check expiring and a huge hassle on my part to go through the process again. Mr. Inkman nor his branch were in any way involved with my account or account management, yet, the check inadvertently ended up in their draft loss department and I feared this would further delay things. I was a bit frantic.

One of those that I emailed was Mr. Inkman. In an era when customer service is not as valued as in the past, I was very skeptical I would meet the deadline. But, to my surprise, Mr. Inkman took it on his own to personally get things done and get the issue resolved. It appears that he tracked down the overnighted check personally, directed it for signature, packaged and overnighted the check back to me. All the while remaining professional and pleasant and providing consistent email updates on the status. It doesn't even look like he delegated, rather taking the initiative and seeing it through on his own.

To me, that's not just doing a job, that's going above and beyond in terms of leadership, professionalism, and customer service. We could not be more happy. And, as a further sign of good will, the Fairway CEO actually emailed me personally to follow-up and assure resolution. Been very happy with Fairway since my refinance, Mr. Inkman's efforts only further reinforce that opinion.

Samer Fallouh

15:01 15 Nov 23

Debbie Salas

21:47 03 Oct 23

This transaction probably would not have happened without Michael. Whenever we hit a stumbling block, he found a way around it! He kept us informed and was a positive light all the way through to the end and beyond.
Thanks

Eric Kieffer

22:46 16 Aug 23

Did business with Michael about 20 years ago and he was happy to help us again. He and his team did a great job. See you in another 20.

The Rise of Mortgage Payment Protection Insurance

What’s Ahead For Mortgage Rates This Week – May 12th, 2025

Explaining Mortgage Options for Self-Employed Borrowers with Irregular Income

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