Last week’s unveiling of new mortgage insurance company standards on conventional agency loans has the support of much of the M.I. industry, with most firms indicating that they will meet the requirements. Other updates in mortgage insurance include an enhanced online platform and loosening of requirements on refinancing of subordinate liens.
On Friday, Fannie Mae and Freddie Mac issued new financial and operational standards for private M.I. companies that insure loans backed by the government-sponsored enterprises.
The new requirements go into effect on Dec. 31, and United Guaranty issued a statement indicating that it will be fully compliant by the deadline.
The Greensboro, N.C.-based company noted that that the requirements are a critical and necessary step in moving on from the financial crisis.
“United Guaranty is committed to being prepared to withstand economic stress events,” an April 20 statement said. “As an AIG member company, United Guaranty is part of a non-bank systemically important financial institution and participates in comprehensive capital analysis and review stress testing, which no other M.I. is currently subject to.”
A statement issued on the same date from Essent Group LTD
indicated that the Hamilton, Bermuda-based firm was already compliant as of March 31.
Essent Chairman and Chief Executive Officer Mark Casale
said in the statement, “Now that they are final, the PMIERs will serve as an important set of national standards that give industry counter-parties more transparency into the claims paying capacity of private mortgage insurance companies, including Essent.”
Also already meeting the new standards is Arch Mortgage Insurance Co., which said Monday that that its available assets exceed the minimum required assets specified in the requirements.
Walnut Creek, California-based ARCH announced in March that its ArchMIConnectSM Origination user interface features a redesigned online platform.
In addition, a live support chat feature has been introduced.
In Announcement 2015-2, Genworth Mortgage Insurance said that
its rate-term refinance definition has been expanded to include paying off seasoned, non-purchase money second liens. The new definition applies to non-agency refinance transactions and portfolio rate-term transactions.
Raleigh, North Carolina-based Genworth said eligible transactions need to meet the GSEs’ definition for payoff of the unpaid principal balance, loan costs, prepaids and funds for the borrower’s use not to exceed the lesser of 2 percent or $2,000. In addition, the subordinate lien needs 12 months’ seasoning, and any home-equity lines of credit can’t have more than $2,000 in total draws during the past 12 months.
