LendingQB said it has put the guidelines from four of the six
“One of the problems with calculating MI is that loan officers and underwriters are forced to individually visit each of the MI companies’ respective websites to determine eligibility and pricing, which is time consuming and error prone,” said David Colwell, vice president of corporate strategy at LendingQB.
“Our proprietary AUS already houses the entire set of underwriting manuals for each investor. By implementing MI eligibility guidelines and rate cards into our decisioning engine, clients are able to quickly render an accurate decision with the click of a button—without having to bounce to other applications.”
The four companies which LendingQB says it has on the LOS are Radian, MGIC, Essent and Genworth. Loan officers can show consumers a point of sale comparison on such things as eligibility and pricing.
Lenders have full control over which MI providers are available for pairing and also the preferred order of providers.
Colwell said that while other product and pricing engines can get mortgage insurance pricing, they do not have the guidelines built into their system.
“So what we’re doing is determining the loan’s product eligibility and incorporating it into MI product eligibility that performs a spot on debt-to-income ratio calculation. Ultimately, this results in a more accurate underwriting decision and thus a higher pull through rate,” he said.
As for the other two MIs, a representative of LendingQB said the company is in negotiations with the newest underwriter, National MI. United Guaranty has its own client-specific platform; there are not currently any plans to implement UG’s guidelines, he said.
Also, the approval received from the AUS is also good enough for a mortgage insurance underwriting approval from the companies involved.
