Following the lead of two of its peers, another mortgage insurance company has released more restrictive requirements for loans with high debt-to-income ratios.
Last month, Mortgage Guaranty Insurance Corp. issued MGIC Bulletin 01-2018 requiring higher credit scores on loans with DTI ratios in excess of 45 percent.
Later in January,
Radian Guaranty Inc. released eBulletin #2018-1 indicating that it would limit loan-to-value ratios and FICO scores on loans with DTI ratios of more than 45 percent.
The latest mortgage insurer to restrict its requirements on loans with high DTI ratios is Genworth Mortgage Insurance.
In
Announcement 2018-1, the Raleigh, North Carolina based firm said it has re-evaluated its underwriting requirements on loans with DTI ratios above 45 percent that are combined with lower credit profiles.
The re-evaluation came after it said such transactions have increased in frequency.
A credit score of at least 700 will now be required on loans with DTI ratios that are greater than 45 percent.
“These changes apply to both our Simply Underwrite and standard guidelines,” the update stated. “The updated underwriting guideline manual and supporting material will be posted to our website on or before March 19.”
The change impacts M.I. applications received on or after March 19.
