Policy changes announced by Radian Guaranty Inc. could mean more loan closings. One of the changes includes a lifting of restrictions on third-party originations.
The Philadelphia-based firm outlined policy updates in eBulletin 2011-02.
According to Radian, the requirement for a minimum 720 FICO score in Arizona, California, Florida and Nevada is being eliminated.
The minimum score on high-balance loans has been reduced to 700 — even on cooperatives, which are now eligible for mortgage insurance.
Properties owned less than 180 days are now eligible for coverage, though a non-delegated submission to Radian will be required.
Radian said that it removed all non-retail origination restrictions for all property types, programs and transactions. Guidelines are now the same for retail and non-retail originations.
The mortgage insurer said it now will accept reduced appraisal documentation on Fannie Mae or Freddie Mac loans that are run through automated underwriting. At a minimum, originators must provide an exterior-only appraisal.
In an effort to make it easier to do business with the mortgage insurer, the bulletin also said that standard guidelines would be retired and transitioned into a single set of guidelines — Radian’s platinum underwriting guidelines.
The changes impact all mortgage insurance applications received on or after March 14.
