New updates to mortgage insurance premiums will help mortgage lenders comply with new rules that become effective in two months.
The Qualified Mortgage rules previously released from the Consumer Financial Protection Bureau go into effect on Jan. 10, 2014.
The new QM rules establish maximum points and fees, including the cost of mortgage insurance premiums on residential transactions.
In Announcement 2013-7, Genworth Mortgage Insurance outlines a standard annual premium plan with a reduced renewal premium. It’s a new version of the classic M.I. plan that has a pro-rated refundable option.
The split premium plan was updated to renewal rates on current up-front premium options of 0.75 percent, 1.00 percent and 1.25 percent.
In addition, refundable single-premium updates were made to base rates and adjustments.
Finally, a new QM-friendly refund schedule was introduced. The schedule reportedly meets the CFPB’s pro rata criteria and is based on the loan-to-value ratio and term of coverage. The new option can be used for all new refundable single- and split-premium M.I. plans
“Our goal is to make it easier for you to select the best premium plan for you and your borrowers,” the Raleigh, N.C.-based company said.
