Mortgage Guaranty Insurance Corp. is now offering streamlined underwriting for loans approved by Fannie Mae Desktop Underwriter or get an accept response from Freddie Mac’s Loan Prospector.
The product is called MGIC Go!, and loans that get those responses from the automated underwriting systems and meet “minimal overlays” are automatically approved by the company to be insured.
Sal Miosi, vice president of marketing, said the new product “allows our company to insure quality loans by exercising its own judgment and underwriting criteria, while allowing our customers to take advantage of their existing underwriting processes.”
They are not the only mortgage insurer introducing this type of product. On Jan. 14, Genworth came out with an announcement to its clients for a product called Simply Underwrite.
The bulletin announcing the product states, “With Simply Underwrite, we have aligned property type LTVs with agency guidelines. In addition, we have eliminated the following for eligible loans: DTI/credit score complexity, all overlays except four simple areas to check, and all geographic eligibility restrictions.”
Back in July 2011, Radian came out with One Underwrite. The change was introduced as part of a group the company called PowerPak.
Part of the reason for Radian’s introduction of the product was to regain market share from the Federal Housing Administration, as well as its competitors.