Several updates from Genworth Mortgage Insurance to its underwriting guidelines will make it easier for some borrowers and properties to qualify for coverage.
Genworth said it will now insure fixed rate mortgages for as much as $625,500 that are secured by three-to-four-unit properties.
Loans must be manually underwritten, and the maximum loan-to-value ratio is being updated to 95 percent. Borrowers will need a minimum credit score of 720 and a maximum debt-to-income ratio of 45 percent.
Projected rents can’t be used to qualify on three- and four-unit properties.
Genworth rate cards will be adjusted to reflect the revised LTV by Oct. 1.
The Raleigh, N.C.-based company discussed the update in Announcement 2014-8.
Maximum loan amounts on manually underwritten second home loans are being raised from $417,000 to $625,500. The top LTV ratio is 90 percent, and the minimum credit score is 720.
On manually underwritten loans with 97 percent LTVs, the delegated minimum credit score is decreasing to 660 from 680. On non-delegated 97 percent loans, the score is being cut to 620 from 680. Manufactured housing and construction-to-permanent loans are ineligible.
The mortgage insurer noted that loans with an “ineligible” response from either Fannie Mae’s Desktop Underwriter or Freddie Mac’s Loan Prospector should follow Simply Underwrite for adjustable-rate mortgages with initial fixed terms of at least three years.
Some loan origination systems — including systems from Ellie Mae, Fiserv and FICS — can be utilized to submit loans for mortgage insurance that utilize gift funds for the borrower’s minimum contribution.
Genworth is making attached housing in Florida eligible for delegated underwriting.
Underwriting efficiencies for Fannie’s Homepath Properties will be accepted by Genworth.
Other updates announced by Genworth include ARMs with fixed payments for just three years will be available on manufactured housing; renovations mortgages can be utilized on investment properties; and Genworth’s policies are being aligned with Fannie and Freddie.
All underwriting changes will be updated in the online underwriting guidelines by Oct. 1.
