Radian Guaranty Inc., the primary mortgage insurance subsidiary of Radian Group Inc., says that mortgages originated under stated-income and stated-asset programs will no longer be eligible for mortgage insurance.
In a message to clients, Radian commented, ‘While certain forms of alternative documentation used to verify assets and income are appropriate with a disciplined underwriting process, the stated programs will no longer be insurable as a result of poor performance.’ This change will take effect on April 30 for all new mortgage insurance applications.
The company adds that as announced earlier this month, revisions to existing underwriting guidelines and pricing policies will take effect on March 31. These significant changes represent a variety of adjustments to loan-to-value, documentation and FICO requirements, and are part of an ongoing process at Radian to respond quickly to market conditions. In addition to guideline changes, updated declining markets territories have also been posted to the Radian Web site.