Several bulletins released by United Guaranty discuss improvements to underwriting requirements and the elimination of restrictions on some third-party, multi-unit and coop transactions.
In one of four bulletins issued Monday, United Guaranty said rate-term refinance rate adjustments will no longer apply on monthly rates as long as the minimum credit score is 720. The update impacts loans submitted for mortgage insurance on or after March 3.
Also being eliminated are rate adjustments on broker third-party originations and condominium rate adjustments.
On second homes, the rate adjustment is being cut to 14 basis points on borrower-paid monthly rates given a 720 credit score.
“Rate adjustments for cash-out refinances transactions above 85 percent LTV and super jumbo loans are being made available to support the eligibility expansion for these products,” the bulletin stated.
The bulletin outlined changes to requirements in some markets. It additionally covered improved pricing on policies with loan to values between 95.01 percent and 97.00 percent for coverage of between 18 percent and 35 percent and for LTVs between 85.01 percent and 90 percent with 30 percent and 35 percent coverage.
A second bulletin highlighted improvements to performance premium underwriting guidelines and eligibility changes. Among the changes for some transactions were higher LTVs, lower minimum credit scores and the ability to insure three- and four-unit properties. The revisions also called for second-home transactions on condos, cashouts on co-ops and the insuring of high-balance agency loans.
Another bulletin discussed updates to United Guaranty’s Geographic Quality Index. Since Dec. 13, 75 markets have improved and three have deteriorated.
And yet another bulletin indicated that all loans with financed mortgage insurance can immediately have a total loan to value of 103 percent after factoring in the financed premium.
