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| One mortgage insurer is abandoning its declining-markets policy. Other changes impact maximum debt-to-income ratios, minimum reserves and the refundability of premiums.Borrower-paid mortgage insurance premiums from Radian Guaranty Inc. will not be refundable, Radian eBulletin 2009-1 said today. A refundable option will be available on some products with an 0.01 percent adjustment to the monthly premium. Borrower-paid M.I. Premiums for policies written on loans closed under the Homeowners Protection Act of 1998, however, will still be refundable.
The changes are effective on M.I. applications received on or after March 15, the bulletin said. Another update involves capping of debt-to-income ratios at 41 percent with no consideration of compensating factors. The Philadelphia-based firm said two months’ reserves will be required on conforming loan amounts even if automated underwriting responses require less. Radian also said it is retiring its declining-markets policy, and markets will no longer be classified as stable or declining. No further declining-markets lists will be published. The mortgage insurer’s maximum loan-to-value is 90 percent, while its minimum credit score is 720. Radian only insures owner-occupied purchase transactions secured by single-family detached properties. |
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