August 6, 2012
New Performance Premium Underwriting Requirement Guides - Effective August 13, 2012
United Guaranty is introducing two new Performance Premium® Underwriting Requirements Guides - one for full-file mortgage insurance submissions and one for United Guaranty's Reporting Acceptance Program®, (RAP®) submissions. These new Guides replace our Performance Premium Underwriting Requirements Guide which was used for both full-file and RAP submissions.
The newPerformance Premium Full-File Underwriting Requirements Guide:
- Is designed to improve ease of use by condensing the previous Guide to two pages so an additional Quick Reference Guide isn't necessary.
- Includes one LTV/Loan Amount/Credit Score/DTI grid combining all fixed and ARM loans. Although the grid is condensed, it expands the loan parameters that may be eligible for insurance.
- Includes an Ineligibility matrix listing all items that are ineligible for insurance.
We encourage all lenders to submit MI applications with a full-file submission so your underwriters can concentrate on the secondary market underwrite. You will no longer need to be familiar with a multi-page underwriting requirements guide. Let us make the right mortgage insurance risk decision for you.
Here's how it works:
- Continue to price United Guaranty first, using the same method you use today—be sure to use the Secure Quote® feature for your MI submissions.
- When a quote is provided, your loan has passed a preliminary check for eligibility based on the loan information in the quote request (not a guarantee of eligibility).
- If a quote is not provided, the preliminary check indicates your loan doesn't meet United Guaranty's eligibility requirements for mortgage insurance.
- Use our new, condensed, two-page Full-File Guide as a reference point to determine whether you should submit the full file to United Guaranty.
- The new LTV/Loan Amount/Credit Score/DTI grid represents general eligibility limits. Layering of risk attributes may affect the eligibility of loans meeting the general requirements within the new Full-File Guide.
- If your loan has characteristics that fall outside the general eligibility limits of the LTV/Loan Amount/Credit Score/DTI grid and are not listed on the Ineligibility matrix, send the loan in for a full-file underwrite
- In many cases, our decision is likely to agree with the secondary market. But, in some cases, we may be able to take more or less risk, based on the parameters in the individual loan file.
- Anything insurable today will continue to be insurable as of August 13, 2012.
- Typical loan documentation remains unchanged. Like today, in some cases we may request additional information to help us make a decision.
- United Guaranty will now consider loans receiving a DU EA, DU Refer with Caution/IV, LP Caution 500 A-minus Eligible, or LP Caution recommendation on a loan-by-loan basis. However you will need to call our Customer Service Department at 877.MI.CHOICE (877.642.4642), Option 3 in order to get a Secure Quote.
- HFA underwriting requirements remain unchanged for full-file submissions. Please contact your United Guaranty representative with any questions.
Performance Premium RAP Guide:
The newPerformance Premium RAP Underwriting Requirements Guide:
- Is specific to RAP submissions (RAPid Link®, EDI, LOS, etc.) and clarifies which loans may be submitted RAP.
- Includes detailed underwriting requirements. Loans not meeting these requirementsmustbe submitted full file.
- Is a duplicate of the Performance Premium Underwriting Requirements Guide that will be retired August 13, minus any requirements specific to full-file submissions.
- In addition the Guide has been updated with the following clarifications:
- Section 4.03, Document Requirements for All Loans—Verbal VOEs must be obtained within 10 business days prior to the note date for employment income, and within 30 calendar days prior to the note date for self-employment income (this was previously announced on June 14, 2012).
- Section 11.01.01, Minimum Contribution from Borrower's Own Funds—A minimum contribution from the borrower's own funds is only required for a purchase transaction or a construction-to-permanent rate/term refinance transaction.
- Section 11.02.01, Reserves – General—When calculating reserves, the note rate PITIA should be used for all product types.
- Section 17.02, Conditional Commitments—Conditional commitments are not issued for mortgage insurance applications submitted via RAP.
United Guaranty's Performance Premium Quick Reference, which included both full-file and RAP underwriting requirements, will be retired on August 13, 2012. It is being replaced with a Performance Premium RAP Quick Reference which will only include RAP underwriting requirements.
For more information about our requirements, see our new Guides (attached):
For more information,please contact your United Guaranty account executive.