Updates at United Guaranty Corp. will result in lower mortgage insurance premiums for borrowers with high-risk characteristics, wholesale originations and refinance transactions. In addition, dozens of markets are being favorably reclassified.
The Greensboro, N.C.-based company is updating its Performance Premium risk-based pricing. The changes favorably impact mortgage insurance applications and rate quote requests received on or after Aug. 20.
It’s the second recent pricing improvement; United Guaranty announced lower premiums in April that became effective on May 14.
“More pronounced pricing benefits” will impact borrowers who are self-employed, who have debt-to-income ratios of at least 37 percent or whose credit scores fall between 640 and 700, according to announcement No. CA2012-11.
Third-party originations and rate-term refinances will also benefit.
“The pricing benefit will be more pronounced when the loan has only one of these characteristics and its higher risk nature is compensated for by the remaining characteristics of the loan,” the bulletin stated.
The mortgage insurer separately announced that its Geographic Quality Index is being updated on Aug. 20 for the 384 core-based statistical areas. The last update was on May 14.
According to bulletin No. CA2012-12, the CBSA changes will have a positive impact on 32 markets. But eight markets will be negatively impacted.
