Less than two months after Genworth Mortgage Insurance updated its rates, debt-to-income ratios and loan-to-value ratios on some of its products, it is making new program improvements.
In July, the Raleigh, N.C.-based firm issued Announcement 2013-3 outlining updated mortgage insurance premiums for various combinations of credit scores and LTV ratios.
Soon after, Announcement 2013-4 was released indicating that its guidelines were being expanded for non-delegated Genworth-underwritten loans.
Those changes impacted applications received on or after Aug. 1.
On Monday, Genworth issued Announcement 2013-5 discussing improvements being made as part of its Simply Underwrite program.
According to the mortgage insurer, “it will reduce rates and expand its Simply Underwrite guidelines to eliminate nearly all overlays and ensure ease of use for customers that deliver loans using the automated underwriting systems of the government-sponsored enterprises.”
Loans with LTV ratios up to 97 percent and FICO scores as low as 62 that are approved by either Desktop Underwriter or Loan Prospector are likely to be approved for coverage by Genworth as long as lenders verify that borrowers contribute at least 3 percent from their own funds.
All new M.I. applications are immediately impacted.
“The expanded Simply Underwrite guidelines offer customers our most competitive and flexible rates and guidelines, making it easier for them to close more loans, faster,” Genworth Mortgage Insurance Senior Vice President of Commercial Operations said in the notice. “These adjustments allow lenders to offer affordable low down payment financing to help creditworthy Americans pursue their dreams of homeownership, and position Genworth USMI to pursue prudent growth.”
In addition, Genworth is lowering rates for most borrowers with FICO scores of at least 740 on monthly and single-premium insurance coverage for applications received on or after Oct. 1.
Rates and adjusters are also being cut for borrower- and lender-paid non-refundable single-premium plans and monthly premium plans for borrowers with FICO scores below 660.
In addition, adjusters for two-unit properties on monthly premium plans are being eliminated.
