October 17, 2012
Performance Premium Underwriting Requirements - Effective Dates October 20 and November 19, 2012

What is changing?

As part of its on-going risk management analysis, United Guaranty is changing and/or clarifying the following Performance Premium underwriting requirements. The effective date for each change or clarification is listed in the tables below.  All changes and clarifications will be added to the Guides with the next update on November 19, 2012.

Change to the Performance Premium Full-File Underwriting Requirement Guide

The following underwriting requirement change will be made to the Performance Premium Full-File Underwriting Requirements Guide.

Topic Change Effective Date
DU and LP Recommendations DU Refer with Caution will be added to this section of the Guide. Loans which receive this DU risk classification will be considered for insurance on a loan-by-loan basis. However, a manual rate quote is required.

(Fannie Mae will add this risk classification with its DU 9.0 release effective October 20, 2012.)
October 20, 2012

Changes or Clarifications to the Performance Premium RAP Underwriting Requirement Guides

The following underwriting requirement changes and clarifications will be made to the Performance Premium RAP Underwriting Requirements Guides.

Topic Change Effective Date
DU and LP Recommendations DU Refer with Caution will be added to this section of the Guide. Loans which receive this DU risk classification will be considered for insurance on a loan-by-loan basis. However, a manual rate quote is required.

(Fannie Mae will add this risk classification with its DU 9.0 release effective October 20, 2012.)
October 20, 2012
Section 4.03 – Documentation Requirements for All Loans Changed the appraisal documentation requirement to the following:

A full Uniform Residential Appraisal Report (URAR), with interior and exterior inspections, is required. All other valuation methods are ineligible.
November 19, 2012
Section 4.04 – Additional Documentation Requirements for Agency AUS Underwritten Loans Clarified that any documentation efficiencies granted by DU or LP may not be followed when the loan receives an "Ineligible" purchase recommendation. November 19, 2012
Section 6.01.01 – Loan Amounts $417,001 - $625,500 Clarified that the requirements for loan amounts $417,001 to $625,500 apply to all primary residences regardless of the number of units (previously stated 1-unit properties only). November 19, 2012
Section 12.01.01 – Valid Credit Scores Clarified that a trade line for which a payment has never been made (for example – a deferred student loan), may not be used to satisfy the requirement for three trade lines evaluated for at least twelve months. November 19, 2012
New Section for Maximum Acreage - Section 14.06 We have separated our acreage requirements from our rural property requirements listed in Section 14.05. The maximum acreage requirement (10 acres) will apply regardless of the neighborhood location of the property.

All subsequent sections in Chapter 14–Property have been renumbered.
November 19, 2012
Section 14.02 – Two- to Four-Unit Properties Added a bullet point to refer the reader to Section 6.01.01 for additional requirements for loan amounts $417,001 to $625,500. November 19, 2012
Section 14.03 – Condominiums For the maximum investor concentration and minimum presale requirements, we have removed the reference to "within the project or subject legal phase." We will defer to the Agencies' requirements for when the number of units in the project or phase(s) should be used to calculate the percentage. November 19, 2012

Please contact your United Guaranty Account Representative with any questions about this announcement.

CA2012-16

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