Some of the nation’s hardest-hit real estate markets have been upgraded by MGIC. The re-classification means that guidelines for lending in the impacted markets will be less rigorous.
Three states — Arizona, Florida and Nevada — have been especially hurt by the downturn in the U.S. real estate market.
Nevada had the worst foreclosure rate in the country during 2011 according to RealtyTrac, with one foreclosure filed for each 16 housing units. Arizona was No. 2 with a filing for every 24 homes. Florida ranked No. 7 with one foreclosure filed for each 49 housing units.
But MGIC said markets in the three troubled states have improved, according to underwriting news bulletin No. 04-2012 released Monday.
As a result, non-restricted market guidelines will apply to loans secured by properties in the three states for applications received today or later.
In Florida, however, attached housing, condominiums and cooperatives remain ineligible. The same restriction is in place for the Las Vegas-Paradise, Nev., core-based statistical area.
