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| One mortgage insurer is changing requirements tomorrow for loans originated by third parties, and another has developed special guidelines for a special refinance program.
Loans originated by third parties will need to be identified by type on mortgage insurance applications submitted to United Guaranty after today, bulletin CA 2009-28 issued today indicated. Third-party originations are those where the application was taken by an entity other than the insured, United Guaranty said. Mortgage service providers are not considered third-party originators as long as they don’t take the application and are paid on an arm’s-length fee basis for services performed even if the loan doesn’t close. In addition to the name and location, the third-party originator’s type must be identified as either mortgage broker, correspondent, community bank, credit union or other. The mortgage insurer’s online application for loan submissions, RAPid Link, has been updated to reflect the revision. United Guaranty said its mortgage insurance application will be updated soon. “This is part of a continuing effort to obtain information that enables us to effectively manage third-party origination business,” the bulletin said.In Radian eBulletin 2009-03, Radian Guaranty Inc. introduced its MI Performing Refinance Policy for New Servicer to support Fannie Mae’s DU Refi Plus Home Affordable Refinance program initiative. Loans submitted under the program do not need to conform to Radian’s current underwriting guidelines even though they are treated and priced like new loans. Instead, loans under the HARP initiative will need to qualify based on Radian’s MI Performing Refinance Policy. |
