Changes being made by Mortgage Guaranty Insurance Corp. will result in improved prices on mortgage insurance premiums for some borrowers.
On residential loans that are in excess of $450,000, Milwaukee-based MGIC is
eliminating the loan amount premium adjustment.
In addition, the mortgage insurance company is also doing away with the loan amount premium adjustment
on mortgages that exceed $650,000.
The updates were explained in MGIC Bulletin 07-2017.
Loans with temporary buydowns where
the permanent payment terms of the mortgage note meet MGIC’s fixed-loan category criteria will now be priced as fixed.
Mortgages that don’t generate an approve or accept response on agency automated underwriting systems will now be priced
according to the representative credit score instead of the lowest credit score. However, these loans will continue to require an MGIC M.I. underwrite/full-doc review.
The new pricing, which is subject to regulatory approval, impacts M.I. applications received by MGIC on or after Dec. 4.
