Mortgage insurance loosening restrictions

Ken Cook NMLS ID 208452 — Mon, 08 Mar 2010 15:17:22 +0000

As with any market or industry people who are in it every day understand the simpler nuances to a greater degree even than many of the analytical pundits who regularly comment on them. That was said just to portray to you, the reader, that the author is very encouraged by these changes to one of our mortgage insurance companies.

Mortgage insurance is required onmost loans over 80% in loan to value (LTV) and can be quite expensive to the home buyer or borrower. The highlighted numbers in the text are the author’s:

IN STABLE MARKETS

97% flex (non affordable housing) to conforming with 700 score

(previously not allowed)

660 credit score for LTVs up to 95% (this was lowered from 680)

680 credit score for condos up to 95% (this was lowered from 700)

CASH-OUTs to 85%, 680 score (previously not allowed) – there will be an

adder on rate card

SECOND HOMES – 90%, 720 score or 85% 680 score (previously not allowed)?- there will be an adder on rate card

IN MODERATELY DECLINING MARKETS

Condos okay to 90% 720 score (previously not allowed)

IN STANDARD DECLINING MARKETS

95% okay with 760 score (LTV raised from 90%)

FOR THIRD PARTY LOANS (TPOs) – EXCLUDING COMMUNITY BANKS OR CREDIT UNIONS

90%, 700 score, 41 dti (credit score lowered from 720) *TPOs cannot do

second homes or cash-out*

PRICING CHANGES-

ARM rates (anything 3/1 arm or lower) are going UP on most rate cards

**FIXED rates (including 5/1 ARMs and up) are relatively UNCHANGED**

NEW TPO adder for BROKER Business (excluding comm bk and credit union)

.25

Condo adder .10

IN STABLE MARKETS

97% flex (non affordable housing) to conforming with 700 score (previously not allowed)
660 credit score for LTVs up to 95% (this was lowered from 680)
680 credit score for condos up to 95% (this was lowered from 700)
CASH-OUTs to 85%, 680 score (previously not allowed) – there will be an adder on rate card
SECOND HOMES – 90%, 720 score or 85% 680 score (previously not allowed) – there will be an adder on rate card

IN MODERATELY DECLINING MARKETS

Condos okay to 90% 720 score (previously not allowed)

IN UG STANDARD DECLINING MARKETS

95% okay with 760 score (LTV raised from 90%)

FOR THIRD PARTY LOANS (TPOs) – EXCLUDING COMMUNITY BANKS OR CREDIT UNIONS ?(TPO is Third Party Originators or Mortgage Brokers)

90%, 700 score, 41 dti (credit score lowered from 720) *TPOs cannot do second homes or cash-out*

PRICING CHANGES ARM rates (anything 3/1 arm or lower) are going UP on most rate cards
**FIXED rates (including 5/1 ARMs and up) are relatively
UNCHANGED**
NEW TPO adder for BROKER Business (excluding comm bk and credit union) .25 Condo adder .10

Questions about mortgage insurance in Georgia? Call me 678-439-8683

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Mortgage insurance loosening restrictions