Radian Guaranty Inc. has clarified its credit requirements, revised submission requirements and eased an appraisal requirement. The mortgage insurance company also expanded the list of qualified condominium projects.
The clarifications and changes were outlined in Radian eBulletin 2009-06 today.
When two of three FICO scores are identical, the identical score will be used, the bulletin said. Borrowers cannot have been 30 days past due on a home mortgage or rental payment during the past 12 months.
Gift funds can only be used after the borrowers have satisfied the minimum borrower-equity requirements with their own funds.
If a field review was obtained for an investor, then Radian wants a copy of it. Field reviews “provide support for the value and accuracy of the full appraisal report.”
One change to Radian’s submission requirements is that non-delegated lenders must submit fully documented loan files that the lenders have underwritten for program and investor compliance.
The Philadelphia-based mortgage insurer clarified its Platinum Guidelines to specify that proceeds from a rate-term refinance can be used to pay off a first mortgage and a subordinate lien that was used in the purchase transaction. But properties are ineligible if they have been listed for sale during the past 60 days.
Also in its Platinum Guidelines, Radian noted that high-balance loans require the borrower to either have 10 percent equity or make a 10 percent downpayment.
In addition, two appraisals will no longer be required on loan amounts above $625,500, and eligible condominium projects have been expanded to include projects with fewer than 10 units.
