Radian Guaranty Inc. said it will accept Fannie Mae Desktop Underwriter Approve/Eligible and Freddie Mac Loan Prospector Accept/Eligible loans for mortgage insurance without the need for a separate underwriting decision by the company starting July 11.
Radian said this is just one of a series of guideline changes it is making. To qualify for this "One Underwrite" program, the borrower can have a FICO score as low as 620. Also, there are four other underwriting overlays for this product, including a requirement that 3% of the downpayment comes from the borrower's own funds.
As part of One Underwrite, Radian expanded its monthly pricing matrix to include both borrower-paid and lender-paid mortgage insurance where the applicant’s FICO is at least 620.
Radian is also lowering by an average of 14 basis points its BPMI monthly standard coverage rates for loans with loan-to-values to 95% and the borrower has a FICO score of 720 and higher.
Anticipating lower government-sponsored enterprise maximum loan amounts later this year, Radian has revised its non-agency jumbo guidelines to where it will provide MI on loans up to $650,000 with LTVs between 85.01% and 90%; and up to $750,000 for loans with LTVs of 80.01% to 85%. The minimum FICO for MI for non-agency jumbos has been dropped to 720 from 760.
