Genworth U.S. Mortgage Insurance (USMI) has announced that it will reduce rates and expand its Simply Underwrite guidelines to eliminate nearly all overlays and ensure ease of use for customers that deliver loans using the automated underwriting systems (AUS) of the government-sponsored enterprises (GSEs). The credit policy changes, effective for mortgage insurance (MI) applications received on or after Sept. 16, 2013, closely align Genworth's requirements with those for loans approved by Desktop Underwriter or Loan Prospector, the automated underwriting systems of Fannie Mae or Freddie Mac, respectively.
As a result, loans up to 97 percent loan-to-value, with Fair Isaac and Company (FICO) credit scores as low as 620 that are approved by the GSE systems also are likely to be approved for mortgage insurance coverage by Genworth USMI. Lenders only have to verify that the borrower contributed a minimum of three percent of the home purchase price from their own funds.
"The expanded Simply Underwrite guidelines offer customers our most competitive and flexible rates and guidelines, making it easier for them to close more loans, faster," said John Clifford, USMI's senior vice president of commercial operations. "These adjustments allow lenders to offer affordable low down payment financing to help creditworthy Americans pursue their dreams of homeownership, and position Genworth USMI to pursue prudent growth."
Additionally, Genworth USMI will offer lower rates and guideline flexibility for monthly and single-premium insurance coverage for mortgage insurance applications received on or after October 1, 2013 (subject to state approvals). The changes include:
►Lower rates for most borrowers with FICO scores of 740 or higher for single-premium plans;
►Lower rates and adjusters for borrower- and lender-paid nonrefundable single-premium plans for borrowers with FICO scores below 660;
►Lower base rates and adjusters for borrowers with FICO scores less than 660 for monthly premium plans; and
►Eliminating adjusters for two-unit properties on monthly premium plans.
The latest changes also ensure that credit union and housing finance agency customers continue to have access to rates and guidelines that meet their unique needs. Simply Underwrite guidelines were introduced in February 2013 as part of the Simplify MISM program dedicated to saving lenders time and boosting their business. Simplify MI extends Genworth USMI's commitment to offer lenders additional value beyond a competitive price.