In conjunction with updates being made to the Federal National Mortgage Association’s automated underwriting system, Genworth Mortgage Insurance is making changes of its own.
Loans with nontraditional credit that receive
an approve/eligible recommendation from Fannie Mae’s Desktop Underwriter will be eligible for delivery on a delegated or non-delegated basis.
But the Raleigh, North Carolina-based firm noted that
loans which don’t receive an approve/eligible recommendation will still need to be manually underwritten based on standard guidelines.
The updates were explained Friday in Announcement 2016-5.
The updates are being made in response to
changes resulting from Fannie Mae DU 10.0 being implemented this weekend.
Factors that are
incorporated into the DU credit risk assessment will have no direct impact on Genworth’s underwriting guidelines.
The mortgage insurer additionally said that its Simply Underwrite and standard guidelines are being revised to allow the occupant borrower on an
affordable-housing or housing finance agency loan to own other residential property at the time of closing.
Genworth said that the updates are effective on mortgage insurance applications received on or after Sept. 24.
