June 14, 2012
When to Indicate Self-Employed and Prior Bankruptcies for Borrowers

Loans involving qualifying income from self-employment or borrowers with a previous bankruptcy present a higher risk of default. When requesting a United Guaranty rate quote or submitting for mortgage insurance, borrowers should be indicated as self-employed or having a prior bankruptcy when the following apply.

Self-Employed Borrowers

A borrower must be indicated as "self-employed" when both of the following apply:

The borrower does not need to be indicated as "self-employed" when any one of the following applies:

Borrowers with Prior Bankruptcies

United Guaranty uses the industry standard seven-year time frame as the determinate for indicating when a borrower has had a prior bankruptcy. Therefore, the borrower only needs to be indicated as having a prior bankruptcy for rate quote requests and mortgage insurance submissions when the bankruptcy has been discharged or dismissed within the past seven years (even when the bankruptcy appears on the borrower’s credit report).

CA2012-09

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