July 30, 2014
Introducing the New Underwriting Requirements Guide
Effective August 4, 2014, one underwriting requirements guide can be used to meet lender loan submissions to United Guaranty. The Underwriting Requirements Guide (the Guide) combines our full-file and delegated data submission (previously RAP®) requirements. To see the Guide and associated reference pieces, please visit our guide page.
- Most of the underwriting requirements are the same for both submission types. When the requirements are different, they are clearly identified (for example, the LTV/Loan Amount/Credit Score/DTI requirements).
- A quick reference to sections with important differences is located in Section 2, Submission Methods, with links for further detail.
As always, we encourage you to submit full-file for any loan that you believe is a good risk, but that is outside our published requirements. Our experienced underwriting staff will quickly evaluate the overall risk of the loan to determine its eligibility for insurance.
There are no changes to underwriting requirements with this update; however, some of the requirements have been reorganized and clarified as detailed below:
- The first three sections include these topics:
- Section 2, Submission Methods, describes both full-file and delegated data submission types and the advantages of each. It also contains a list that identifies the sections throughout the Guide where delegated requirements differ from full-file requirements with links to these sections.
- The Commitment/Certificate section has been moved to Section 3.
- Underwriting requirements now begin with Section 4.
- The LTV/Loan Amount/Credit Score /DTI Requirements section has been moved in front of the Ineligibility Matrix and Documentation sections for quicker access.
- Grant requirements have been clarified. Grants used to satisfy the minimum borrower contribution requirement must be donated with no condition for repayment.
- The title of Section 9 has been changed from "Loan Instruments" to "Loan Types."
- Valid Credit Scores information has been amended to reflect that all borrowers must have a valid credit score (Section 14.01.01).
Please contact your United Guaranty Account Representative if you have questions about this announcement. For questions regarding underwriting requirements or submissions, contact our Underwriting Customer Service Team at 877.MI.CHOICE (877.642.4642) or email UGC:customerservice.