On loans backed by Fannie Mae and Freddie Mac, Radian Guaranty Inc. is cutting its rates for some borrowers with higher credit scores.
The mortgage insurance company
is expanding the number of categories for FICO score ranges to eight from just four that are currently in place.
The move is being made to more closely align with new private mortgage insurance eligibility requirements from the Federal Housing Finance Agency.
The details were provided in Radian eBulletin 2016-2.
On borrower-paid monthly rates, lower premiums will generally apply to borrowers with FICO scores of at least 740 and loan terms in excess of 20 years.
Also benefiting will be borrowers with scores of at least 680 whose loan terms are no more than 20 years, according to the Philadelphia-based firm.
Rates could increase for borrowers whose scores are less than 740 and whose loan terms exceed 20 years.
Also on borrower-paid rates, adjustments for loan amounts above $417,000 and for rate-term refinances are being eliminated.
For loans with lender-paid single rates, the 680-to-719 FICO bucket is being split into two new buckets.
Borrowers with scores of at least 760 could see lower rates depending on the loan-to-value ratio.
Borrowers whose scores are less than 760 on lender-paid policies will see higher rates if their LTV ratios are at least 90 percent.
The same holds for borrowers with credit scores of less than 700 whose LTVs are 85 percent.
M.I. applications received on or after April 7 are impacted by the new pricing, subject to regulatory approval.
