Rate changes being made by Radian Guaranty Inc. will improve mortgage insurance premiums for higher loan amounts, refinances and borrowers with high credit scores.
The Philadelphia-based company is expanding the number of credit-score categories for borrower-paid single rates from four FICO buckets to eight buckets.
The lowest FICO bucket is for credit scores that range from 620 to 639, while the highest FICO bucket is for scores of at least 760.
Radian discussed the updates in eBulletin #2017-05.
Other changes for single-rate premiums include lowering fixed rates for all FICO buckets, establishing rate cards for loans with terms of 20 years or less, and revising premium adjustments.
In addition, Radian is eliminating adjustments for loan amounts between $424,100 and $650,000, rate-term refinances and terms of 25 years or less.
On Radian’s SplitEdge rates, FICO buckets are being expanded from three to eight, rates for FICO scores of at least 740 are being lowered, and premium adjustments are being revised.
Also on SplitEdge rates, adjustments are being eliminated for loan amounts between $424,100 and $650,000 and for rate-term refinances.
The rate changes, which are subject to regulatory approval, impact M.I. applications received on or after Sept. 18.
