Radian Guaranty Inc. will be cutting the rates on its mortgage insurance premiums. Impacted loans include those with multiple borrowers and high debt-to-income ratios.
Its Philadelphia-based parent, Radian Group Inc., announced Monday that it is updating the rates on its M.I. premiums.
The updates by the mortgage insurance company are reportedly being made in an effort to provide increased risk-based granularity and align better with industry trends.
The
updates, which impact lender- and borrower-paid premiums, were discussed in eBulletin #2018-3.
“Consistent with the company’s strategy to optimize the risk-adjusted returns of its M.I. portfolio and compete for the high-quality M.I. business being originated today, Radian has decreased its monthly premium rates and increased its single premium rates for mortgage insurance,” Radian said.
Among the changes are the reduction of rates on loans to multiple borrowers.
Radian will also be introducing rate adjustors on loans where the DTI ratios are more than 45 percent.
The mortgage insurer noted that the changes would have the effect of cutting premiums on its recent overall business by 6 percent — with one-half the loans it insured being impacted.
All M.I. applications received on or after Jun 4 are affected by the updates.
