Several mortgage insurance companies this year have teamed with providers of product and pricing engines to integrate the process of loan pricing with the process of obtaining M.I. premiums. Other advancements in the mortgage insurance business focus on the Home Affordable Refinance Program.
Guidelines at Radian Guaranty Inc. were updated to reflect the 9.0 updates to Fannie Mae’s Desktop Underwriter, eBulletin 2012-5 said. Appraisal options, minimum reserves and maximum loan-to-value ratios on adjustable-rate mortgages are affected. In addition, all references to DU Expanded Approval Recommendations have been deleted from Radian’s guidelines and One Underwrite has been updated to reflect DU changes.
The updates impact M.I. applications received on or after Oct. 22.
Changes to HARP announced on Sept. 14 by Fannie and its government-controlled cousin Freddie Mac will be supported by Genworth Mortgage Insurance, according to an announcement Monday from parent Genworth Financial Inc. Genworth noted that the changes will make it more efficient for lenders to offer HARP refinances and could encourage more small lenders, community-based lenders and new mortgage servicers to participate in HARP.
The Richmond, Va.-based mortgage insurer claims that it has helped more than 57,000 borrowers refinance through HARP since 2009.
Enhancements to Genworth’s customer-facing website substantially reduced the number of data fields needed to submit a full-service loan package and receive a decision, according to a July 9 bulletin. The “quick submit option” makes for an enhanced customer experience, “particularly for lenders that currently submit loan documents via email, or on paper using more costly facsimile transmission and overnight mail methods.”
Genworth noted that the “quick submit option” is the latest in a string of ongoing enhancements that have made submission easier for contract underwriting, HARP and “doc-only” full packages. The website enhancement, which was first promoted by Genworth in February, enables lenders to submit HARP and contract underwriting deals through the same web portal.
Genworth unveiled a relocation product in late March with discounted M.I. premiums to help credit unions capitalize on relocation business. The product is targeted at members of the military — who tend to move more often. The mortgage insurance company said it has a team dedicated to credit unions.
In June, Genworth spotlighted recent increases in Federal Housing Administration premiums — which it noted were likely the result of rising delinquency. As of August, FHA reported that 90-day delinquency was 9.5 percent, significantly higher than 8.4 percent in August 2011. Genworth sees increasing premiums continuing.
“As the FHA raises prices, private mortgage insurance continues to be more competitive than ever for buyers with less than a 20 percent down payment,” the statement said. “Moreover, private mortgage insurers are far better-positioned to take on new risk.”
An earlier “media memorandum” from Genworth’s public relations firm highlighted how private mortgage insurance can be canceled while FHA premiums continue regardless of equity. The statement additionally said that it offers coverage for monthly mortgage payments when borrowers lose their jobs.
Genworth disclosed in May that its chairman and chief executive officer, Michael D. Fraizer, resigned. Martin P. Klein was named acting CEO, and James S. Riepe was appointed chairman of the board. Klein, who has spent nearly three decades in financial services and mortgage insurance, had just been named as president and CEO of Genworth’s recently formed global mortgage insurance division.
Mortgage Guaranty Insurance Corp. said earlier this year that it was added as a service provider to the Calyx Network. The Milwaukee-based firm said that the integration will help its customers streamline originations, reduce data entry time and increase accuracy.
MGIC also teamed up with Mortech Inc. to enable its programs to be quoted on the MarksmanLMP pricing engine. MarksmanLMP automatically generates mortgage insurance quotes when LTV ratios exceed 80 percent.
“The MISMO-based integration allows MarksmanLMP users to seamlessly check MGIC’s pricing without having to leave the platform,” a news release said. “Lenders receive initial mortgage insurance rate quotes at the corporate and/or branch levels that can be dynamically adjusted according to specific loan scenarios.
This fully automated two-way exchange of data provides mortgage lenders with a more efficient lending strategy, which enables a faster loan closing process and increased profitability.”
But Mortech, a Mortgage Daily advertiser, isn’t the only company to integrate mortgage insurance into its pricing engine.
Optimal Blue said early this year that its platform can provide rate quotes and pull M.I. rate histories from United Guaranty. The alliance between the two companies enables the mortgage insurer’s customers to obtain up to five product quotes.
Prior to that, Radian announced that it partnered with LoanSifter to provide M.I. rate quotes or estimates as part of its M.I. best execution pricing platform.
