A number of requirements designed to support lending under the Home Affordable Refinance Program were outlined by mortgage insurer Radian Guaranty Inc.
Radian said that its HARP process has been streamlined and simplified as much as possible to support additional lender participation.
As a result, it updated its HARP eligible modification program policy to clarify a number of issues.
The clarification was covered in Radian eBulletin 2012-4.
The Philadelphia-based company said that it has no overlay to guidelines from Fannie Mae and Freddie Mac on HARP transactions.
Radian noted that it will not perform quality control audits to verify HARP underwriting accuracy. In addition, it won’t perform an underwriting review at time of claim filing.
Coverage will not be rescinded because of HARP credit or underwriting related issues.
Lenders represent and warrant that the loan was underwritten according to Fannie or Freddie HARP guidelines. But Radian said it doesn’t charge additional fees for waiving the original underwriting reps and warrants for HARP loans.
The mortgage insurance company noted that it retains its rights under the master policy regarding servicing practices.
