Updated guidelines issued by Genworth Mortgage Insurance Corp. impact maximum loan-to-value ratios, maximum debt-to-income ratios and minimum credit scores. In addition, mortgage insurance premiums have been updated.
In Announcement 2013-3, Genworth introduced new rates for mortgage insurance applications that are received on or after Aug. 1.
The changes included reduced 85 percent LTV base rates for credit scores of at least 760, increased 97 percent LTV base rates for credit scores less than 760 and reduced rates for terms that don’t exceed 25 years with credit scores of at least 760.
The updates apply to both borrower- and lender-paid, single-premium mortgage insurance.
On Friday, the Raleigh, N.C.-based company issued Announcement 2013-4 indicating that its guidelines are being expanded for non-delegated Genworth-underwritten loans.
The maximum DTI ratio on one-unit properties is being raised to 50 percent, while the minimum credit score is being reduced to 680 on loans with 97 percent LTVs and 620 on mortgages with LTVs no more than 95 percent.
The expanded guidelines apply to applications received beginning next month.
“We will consider loans with these new expanded criteria for DU/LP approvals (Simply Underwrite), as well as for manually underwritten loans,” the announcement stated.
On housing finance agency loans the minimum borrower contribution is being updated based on the number of units, LTV ratio and DTI ratio.
In addition, reserve requirements are being updated for housing finance agency loans.
