Radian Guaranty Inc. relaxed its guidelines on non-agency jumbo mortgages in anticipation of the end of the government-sponsored jumbo mortgage. The mortgage insurer also announced other enhancements, including a new program that reduces required appraisal documentation.
Mortgage insurance coverage will be available on non-agency loans up to $650,000 with loan-to-value ratios as high as 90 percent, Radian said Monday.
Loans as high as $750,000 can be insured for up to 85 percent LTV.
The updates apply to mortgage insurance applications that the Philadelphia-based firm receives after July 10.
The temporary $729,750 loan limit for both super-conforming and FHA-insured loans in high-cost areas is scheduled to expire at the end of September, and the Obama administration has indicated that it does not intend to pursue an extension of the limits.
“With the reduction in the government-sponsored enterprise’s and the Federal Housing Administration’s loan limits scheduled for later this year, having Radian’s jumbo coverage … will be especially helpful to lenders,” the bulletin stated.
Radian lowered the required FICO score on non-agency jumbo loans to 720 from 760. In addition, the restriction of charter minimum coverage is being eliminated.
Other changes at Radian include a reduction in rates for its BPMI monthly standard coverage on 95 percent LTV loans with 720 FICO scores and an expansion in BPMI and LPMI monthly rates to borrowers with credit scores of as low as 620.
The 10-acre limitation on all loans has been nixed — though lot sizes in excess of 10 acres will be limited to a 35 percent land-to-value ratio.
Non-traditional credit can now land a borrower in the lowest-priced category.
The mortgage insurer concurrently introduced its One Underwrite program. The offering “further aligns M.I. eligibility with Fannie Mae Desktop Underwriter and Freddie Mac Loan Prospector approval recommendations and eliminates the concept of a double underwrite for M.I. eligibility.”
The program accepts borrowers who make a minimum 3 percent contribution and whose FICO scores are at least 620. Only owner-occupied one- and two-unit properties are eligible. Attached condominiums and cooperatives located in hard-hit counties in Nevada and Florida are ineligible.
Radian said One Underwrite allows for reduced appraisal documentation. It also eliminates condominium project overlays and subordinate financing restrictions. It is available for Fannie Mae Homestyle Renovation loans and allows activation of the commitment prior to completion.
