Relaxed jumbo requirements at Genworth Mortgage Insurance include higher loan-to-value ratios and lower credit scores. Some premiums were lowered.
For loan amounts of as much as $650,000, the maximum single-family LTV ratio has been raised to 97 percent from 95 percent.
The Raleigh, North Carolina-based said the higher LTV ratio requires a credit score of at least 720 and a maximum debt-to-income ratio of 45 percent.
Details about the updates were explained in
Announcement 2017–2.
On loan amounts up to $850,000, the minimum credit score on transactions with LTV ratios up to 90 percent has been lowered to 700 from 720.
Required reserves on loans from $850,001 to $1 million have been lowered to nine months from 12 months.
Genworth now allows subordinate financing on loans from $850,001 to $1 million as long as the combined LTV ratios doesn’t exceed 85 percent.
On investment properties, required credit scores have been lowered to 700 from 720.
Genworth also made changes based on Fannie Mae announcement SEL-2017-04. These include simplified calculations for student loans and the exclusion of debts paid by others.
M.I. applications received today or later are impacted by the changes.
On Genworth’s split-premium borrower-paid M.I. rates, rate adjusters have been removed for rate-term refinances and loan amount in excess of $424,100. In addition, rates were introduced for loan terms of 20 years or less, and the number of credit score buckets was increased. The reduced rates impact applications received on or after June 12.
