Upcoming updates at Radian Guaranty Inc. impact pricing and minimum credit scores. The mortgage insurance company has also revised its appraisal requirements, refinance eligibility guidelines and policy on automated underwriting.
The Uniform Appraisal Dataset requirements from Fannie Mae and Freddie Mac are required for loans that are approved through One Underwrite.
The changes were outlined Monday in Radian eBulletin 2011-06.
Radian noted that Fannie’s Desktop Originator will become an eligible automated underwriting system option for One Underwrite loans.
The mortgage insurer reported that it is eliminating the minimum equity requirement for rate-term refinances, though the maximum loan-to-value ratio won’t change.
Radian also outlined new FICO tiers and pricing for its single-premium rates.
Rates will increase “slightly” for loans where the FICO score is higher than 759, while borrowers with scores between 720 and 759 will see lower premiums.
“For FICOs of 739 and below, our single premium rates will be consistent with the industry,” the bulletin stated.
In addition, Radian said that a rate adjustment discount will now be offered on LPMI single premiums for relocation loans.
BPMI and LPMI single premium rates will be expanded to include loans with minimum scores of 620. The revision coincides with the One Underwrite program.
The SplitEdge product will be expanded to provide new rates for FICO scores between 680 and 719 on fixed-rate mortgages with LTVs of 97 percent and lower. The same goes for loans that are not fixed-rate when LTVs are no greater than 95 percent.
“As part of this expansion, Radian is revising our rate adjustments to match the new FICO-based rate tiers,” the company said.
The updates go into effect on all mortgage insurance applications received after this month.
