Genworth Mortgage Insurance Corp. announced that it is expanding options for lenders on loans used to finance new home construction.
Genworth clients will have two options for activating mortgage insurance coverage on single-close construction-to-permanent loan transactions.
The mortgage insurer said that update is part of its “progressive effort to Simplify MI” that will make it easier for its customers to underwrite and close more loans.
The first option is to make coverage effective prior to the completion of the property as of the initial loan close date. In that case, the premium will be due when coverage is activated.
The second option is to make the coverage effective at the completion of the property. Insurance will go into effect as of the date that the loan converts to permanent financing.
The Raleigh, N.C.-based company outlined the updates in Announcement 2014-3.
The 12-month commitment term will remain for all construction-to-permanent loans.
The changes impact mortgage insurance applications received on or after June 9.
Genworth additionally noted that transactions determined to be ineligible by Loan Prospector can be submitted using its Simply Underwrite guidelines as long as the only reason for the ineligible response is the loan-to-value ratio.