Several updates at Radian Guaranty Inc. include the doubling of available cashout, enhanced jumbo guidelines and lower premiums. Radian is also making changes that will help mortgage lenders comply with Qualified Mortgage requirements.
A 5-basis-point reduction is being made on borrowers-paid monthly premiums. The lower pricing applies to all FICO and loan-to-value ratio buckets.
The improved pricing at the Philadelphia-based company, which is subject to regulatory approval, will go into effect on Dec. 2.
The update was covered in Radian eBulletin 2013-3.
On Radian’s standard eligibility underwriting guidelines, the amount of allowable cashout on refinance transactions has been increased to $150,000.
The mortgage insurance company noted that prior to this change, the amount of allowable cashout was only $150,000.
Radian noted that there is no overlay on cashouts with its One Underwrite program.
On non-agency jumbo mortgages up to $625,000, Radian will now insure loans with LTV ratios of between 90.01 percent and 95.0 percent.
The debt-to-income ratio on loans up to $850,000 has been lifted to 45 percent. Such loans, however, require a minimum FICO score of 740.
Another change to jumbo guidelines includes the eligibility of non-agency jumbo mortgages for non-delegated submissions.
In addition, reserve requirements for non-agency jumbo loans has been updated to six months on loans that exceed $625,000.
Radian said it is supporting QM compliance by providing refundable borrower-paid single premiums. QM requirements become effective in January.
The mortgage insurer is also offering Refundable SplitEdge premiums that include new 1.50 percent and 1.75 percent up-front options. The options will also be available for non-refundable loans.
One other QM-related update is a new three year refund schedule.
Other updates to the Radian’s guidelines include clarification that Community Seconds with 105 percent combined LTV ratios are eligible under One Underwrite and an update to remove the attached condominium/co-operative exclusion for Miami-Dade and Broward Counties in Florida and Clark County, Nev.
