February 16, 2016
CUA 2016-01: Changes to CU SwiftClose
Effective February 16, 2016
Effective February 16, 2016, we are removing the following overlays to our CU SwiftClose® underwriting requirements:
- Minimum borrower contribution requirements—we will align with all Agency minimum borrower contribution requirements.
- Subordinate financing:
- We will align with the Agencies' subordinate financing requirements except that the maximum 100% CLTV remains in effect for loans where the subordinate financing meets Fannie Mae's Community Seconds® or Freddie Mac's Affordable Seconds® requirements.
- We will continue to clarify that funds that may require repayment under any circumstance are considered loans and must be included in the CLTV, including those that are forgivable or for which monthly payments are deferred. This includes loans for which the requirement for repayment is recorded with a mortgage document or as a restriction within the recorded deed.
- Condominium and cooperatives—We will align with the Agencies' condominium and cooperative requirements (manufactured housing units will remain ineligible).
The Credit Union Underwriting Guide, supporting documents, and all systems will be updated on February 16, 2016 to reflect these changes.
Please contact your United Guaranty Account Representative if you have questions concerning this announcement.
© United Guaranty Corporation 2016. All rights reserved. United Guaranty is a marketing term for United Guaranty Residential Insurance Company and United Guaranty Mortgage Indemnity Company. United Guaranty and CU SwiftClose are registered marks. Coverage is available through admitted company only. Community Seconds is a mark of Fannie Mae. Affordable Seconds is a mark of Freddie Mac.