April 10, 2013
- Changes to UG's HFA Underwriting Requirements Effective May 13, 2013
- Geographic Quality Index (GQX®) Classifications No Longer Published - Effective May 13, 2013
- Updated Doc Station Guide
- United Guaranty Underwriting Support Now in Las Vegas
These changes are effective for new mortgage insurance applications received on or after May 13. Only the changes outlined below are being made All other HFA underwriting requirements will remain the same.
- Minimum Borrower Contribution:
- The expanded minimum borrower contribution will be eligible in all markets.
- A maximum LTV of 95% is being added to the requirement for gifts/grants to be considered the borrower's funds for satisfying the minimum contribution.
- Additional requirements when using the expanded requirements for subordinate financing and/or minimum borrower contribution:
- GQX is being removed from the requirements. The current requirements for GQX A will apply for all markets.
- Florida condos and co-ops will remain ineligible under the expanded requirements for subordinate financing and/or minimum borrower contribution.
As a reminder, the HFA requirements apply only when the expanded requirements for subordinate financing and/or minimum borrower contribution are being used for the loan.
HFA Underwriting Guidelines can be found here: HFA-Additional_UW_Requirements.pdf.
Beginning on May 13, 2013, United Guaranty will no longer publish the Geographic Quality Index (GQX®) classifications
Although geographic risk will remain part of United Guaranty's Performance Premium® pricing model, the improving housing market and other macro trends reduce the need to publish updates. If you have questions, including those related to geographic market risk, please contact your United Guaranty Account Executive.
If you're using United Guaranty's new online document submission tool - Doc Station - take a moment to look at our updated user guide. We've added even more tips, including specific instructions for our customers who use Internet Explorer 10. We hope you continue to find Doc Station an easy way to send us your files.
As regional housing markets improve, we've expanded our western U.S. underwriting support! Our new Las Vegas office complements existing branches in Seattle, Atlanta, and Chicago and our Greensboro home office. Wherever you are, we're here to help. Call us today.