Mortgage Insurer USMI Reduces Rates, Expands Underwriting Guidelines

Genworth U.S. Mortgage Insurance (USMI), a unit of Genworth Financial Inc., is reducing its rates and expanding its Simply Underwrite guidelines to eliminate nearly all overlays and ensure ease of use for customers that deliver loans using the automated underwriting systems (AUS) of the government-sponsored enterprises (GSEs).

The credit policy changes, now in effect, closely align Genworth's requirements with those for loans approved through Fannie Mae's Desktop Underwriter or Freddie Mac's Loan Prospector automated underwriting systems.

As a result, loans up to 97% loan-to-value – with FICO credit scores as low as 620 that are approved by the GSE systems – also are likely to be approved for mortgage insurance coverage by Genworth USMI. Lenders have to verify only that the borrower contributed a minimum of 3% of the home purchase price from personal funds.

"The expanded Simply Underwrite guidelines offer customers our most competitive and flexible rates and guidelines, making it easier for them to close more loans faster," says John Clifford, USMI's senior vice president of commercial operations. "These adjustments allow lenders to offer affordable low down payment financing to help creditworthy Americans pursue their dreams of homeownership and position Genworth USMI to pursue prudent growth."

Additionally, Genworth USMI will offer lower rates and guideline flexibility for monthly and single-premium insurance coverage for mortgage insurance applications received on or after Oct. 1, 2013 (subject to state approvals). The changes include the following:

  • Lower rates for most borrowers with FICO scores of 740 or higher for single-premium plans;
  • Lower rates and adjusters for borrower- and lender-paid nonrefundable single-premium plans for borrowers with FICO scores below 660;
  • Lower base rates and adjusters for borrowers with FICO scores less than 660 for monthly premium plans; and
  • Eliminating adjusters for two-unit properties on monthly premium plans.

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