Mortgage insurance premiums are being reduced by Radian Guaranty Inc. The improved pricing will benefit borrowers with high credit scores. The mortgage insurer also cut its monthly adjustments and integrated its rate quotes into a loan origination system.
Borrower-paid monthly rates have been lowered on fixed-rate and adjustable-rate mortgages.
Impacted borrowers are those with FICO scores of at least 760.
The Philadelphia-based company highlighted the changes in eBulletin 2012-2.
On mortgages with loan-to-value ratios of no more than 85 percent and 12 percent coverage, the premium is being reduced to 0.28 percent.
Borrowers whose LTV ratios are higher than 85 percent but not more than 90 percent will see premiums for 25 percent coverage lowered to 0.44 percent.
Loans with LTVs in excess of 90 percent and up to 95 percent will have premiums for 30 percent coverage cut to 0.59 percent.
For rate-term refinances, monthly adjustments on borrower-paid loans is falling to 0.05 percent, while they are being reduced to 0.18 percent on cashout transactions and 0.20 percent on loans more than $417,000.
New pricing goes into effect on mortgage insurance applications received after April 30, though it is subject to regulatory approval.
Radian said that it has become the first mortgage insurance company that enables lenders to get a rate quote directly from FIS Global Solutions’ LOS.
