August 8, 2013
Introducing QMISM - United Guaranty’s Qualified Mortgage (QM)-Ready MI Products - including SmartSinglesSM Refundable Single Premium, available August 12, 2013 in Rate Runner®
With QMI, United Guaranty’s QM-friendly mortgage insurance option, borrowers get the benefit prior to the QM effective date.
Qualified Mortgage regulations go into effect for mortgage loans originated on or after January 10, 2014. These rules clearly establish maximum points and fees.
United Guaranty’s QMI products eliminate the guesswork related to mortgage insurance when lenders calculate maximum points and fees, while providing competitive rates and payment options for borrowers.
United Guaranty’s QMI options include:
- PostPay® borrower-paid monthly premium
- SmartSingles, United Guaranty’s NEW refundable borrower-paid single premium.
- All lender-paid MI plans, which reflect the MI cost in the mortgage interest rate.
According to QM regulations1, when private MI is refundable, you may exclude up to the cost of FHA up-front MI (currently 1.75%) when calculating maximum points and fees. Borrower-paid single premium up to 1.75% is not included in the maximum allowable fee calculation. Plus, borrowers get the advantage of a refund if the loan is repaid in the first three years for any reason, not just an FHA to FHA refinance. The SmartSingles refund schedule is now available on United Guaranty’s website.
- It’s the smart choice for borrowers who want the lowest payment and a refund if they refinance or move in the near term.
- United Guaranty’s refundable pricing is comparable to non-refundable singles from other companies.
1 For full details please see the final QM rule.