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Radian “A Minus” Guidelines and Pricing Philosophy

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Radian “A Minus” Guidelines and Pricing Philosophy Powered By Docstoc
					Radian “A Minus” Guidelines and Pricing Philosophy
Blue text denotes revisions made since 03-31-06.


Radian is one of the country’s top MI providers and an industry leader in programs
for “A Minus” lending. Our “A Minus” program is designed for the borrower who has
credit criteria that does not quite meet the Radian “A” guidelines.

Radian is applying “A Minus” premium rates to certain Agency automated underwriting
system responses as defined and outlined within this document. Please refer to Radian
pricing material for premium information.

Purchase
Rate/Term Refi                                Units        Maximum LTV/CLTV                               Loan Amount
Primary Residence5                                                                   3, 6
                                                  1 ............... 100%/100% .......... conforming limit
                                               1–2 .................... 95%/95%6 ....................... $450,000
                                               1–2 ..................... 90%/95%6 ....................... $475,000
                                               1–2 ...................... 85%/90% ....................... $600,000
                                               3–4 .................................... ..................... Not Eligible

Second Home 1, 5                                    1 ..................... 95%/95%6 ........... conforming limit
                                                    1 ..................... 90%/95%6 ....................... $460,000

Investment Property                                   ...................................... ..................... Not Eligible


Cash-Out Refi 2                               Units       Maximum LTV/CLTV                       Loan Amount
Primary Residence 1, 5                                                           6
                                               1–2 ...................... 90%/90% .......... conforming limit
                                                                               Maximum $50,000 cash-out
                                                1–2 ...................... 85%/85% ....................... $475,000
                                                                              Maximum $100,000 cash-out


Second Home 4, 5                                    1 ...................... 90%/90%6 ...................conforming
                                                                                  Maximum $50,000 cash-out

Investment Property                                   ............................................................ Not Eligible
Please refer to further “A Minus” guideline criteria within this document.




Replaces all prior publications and subject to change, with notice.

Page 1 of 14                              Effective date: January 31, 2007                            Radian A Minus Guidelines
Footnote detail
1. Co-ops and manufactured housing are ineligible.
2. Debt consolidation is priced as cash-out. Borrowers may leave the closing table with a maximum of cash,
   per program guidelines and including debts paid as referenced herein.
3. Fannie Mae Desktop Underwriter EA I, II, III or Freddie Mac Loan Prospector Caution/Eligible with
   Code 500 Message response required; non-agency AUS or manual underwriting is ineligible.
4. Second home cash-out refinances are only eligible if the loan was underwritten by an agency automated
   system and has one of the agency responses identified in the “Agency Automated Underwriting Systems”
   section of these guidelines.
5. Condo specific restrictions as to maximum LTV and/or minimum FICO apply, please see Condo section
   on page 10 for details.
6. Loans with LTV > 85% require a minimum FICO of 575, regardless of any AUS response.


Agency Automated Underwriting Systems
Pricing – Specific to Agency AUS
Radian will apply “A Minus” rates to loans underwritten by an agency automated system
as follows:
• All loans with a LTV greater than 95% and a FICO score less than 620 will receive
   Radian A Minus rates, regardless of the AUS response.
• Fannie Mae Desktop Underwriter Expanded Approval/Eligible (EA) levels I, II & III
   and Freddie Mac’s Loan Prospector Caution/Eligible with Code 500 Message will be
   priced at Radian “A Minus” rates without exception, regardless of a minimum FICO
   score, or a FICO score greater than 619.
• Fannie Mae Desktop Underwriter, EA IV and Freddie Mac Loan Prospector
   Caution/Eligible without the Code 500 message will be priced at Radian “A Minus”
   rates.
• Agency automated underwriting system responses that denote the loan is “ineligible”
   will be priced accordingly.
• Please refer to http://www.radian.biz/ for Radian premium pricing information

Eligibility / Approval
Loans containing the following features are not eligible for Radian’s A Minus program,
regardless of the AUS response:
   • Non-owner occupied / investment properties are ineligible, regardless of the AUS
      response.
   • All 3-4 unit properties are ineligible (owner and non-owner occupied), regardless
      of the AUS response.
   • All loans with an LTV greater than 85% and a FICO score less than 575 are
      ineligible, regardless of the AUS response.
   • All ARMs with an LTV greater than 95% and a FICO less than 620 must have an
      initial fixed interest rate period of 5 years or greater, regardless of the AUS
      response.


Replaces all prior publications and subject to change, with notice.

Page 2 of 14                              Effective date: January 31, 2007        Radian A Minus Guidelines
    • Interest only loans are ineligible for Radian’s “A Minus” product. Please reference
      page 12.

Agency AUS Responses:
• Fannie Mae Desktop Underwriter Expanded Approval/Eligible (EA) levels I, II & III
  and Freddie Mac’s Loan Prospector Caution/Eligible with Code 500 Message.
  Radian will continue to accept these agency automated underwriting system responses
  for Radian mortgage insurance, subject to the above eligibility requirements. Eligible
  loans containing these automated underwriting system responses, subject to the above
  eligibility requirements, are not required to meet Radian “A Minus” underwriting
  guidelines as noted within this document.

• Fannie Mae Desktop Underwriter, EA IV and Freddie Mac Loan Prospector
  Caution/Eligible without the Code 500 message
  These loans must be submitted to Radian for approval and they must meet Radian’s
  “A Minus” program guidelines, including a FICO minimum of 575.

• Agency automated underwriting system responses that denote the loan is “ineligible”
  These loans must be submitted to Radian for approval or may be issued under a
  lender’s delegated underwriting approval authority with Radian. These loans must
  meet the applicable Radian program underwriting guidelines, including minimum
  FICO scores.

Non Agency Loans
• All other loans must have a minimum FICO score of 575 and a maximum LTV of
  95% and will be required to meet Radian’s “A Minus” underwriting guidelines. These
  loans will be priced at Radian “A Minus” rates.
• These loans may be submitted to Radian for approval or may be issued under a
  lender’s delegated underwriting approval authority with Radian. Please reference
  Submission Requirements – Delegated within this document.

Credit — Philosophy and General Handling
The basis for any credit analysis should be to review each borrower’s complete credit
history, length of time accounts have been opened, types of credit used, balance to credit
limit comparisons and number of recent inquiries. At Radian, we feel that the credit score
should only be a part of the total credit consideration. However, some lenders’ common
practice is to determine a borrower’s qualification for products and programs solely on
minimum FICO score requirements. To evaluate the complete credit picture, Radian
will apply the following credit criteria in order to determine if a borrower’s FICO score
is a true representation of the borrower’s credit profile when determining insurability
of a loan.

Replaces all prior publications and subject to change, with notice.

Page 3 of 14                              Effective date: January 31, 2007   Radian A Minus Guidelines
• IF the borrower(s) has 24+ months primary housing (mortgage or rent) history
  reported/documented with 0x30 THEN a minimum of 2 additional tradelines* with
  12 months reported activity on each are required.
• IF the borrower(s) has 12–24 months primary housing (mortgage or rent) history
  reported/documented with 0x30 THEN a minimum of 3 additional tradelines* with
  24 months reported activity on each are required.
• IF the borrower(s) has 0–12 months primary housing (mortgage or rent) history
  reported/documented and/or prior derogatory history on the current mortgage/rental
  history THEN a minimum of 4 additional tradelines* with 24 months reported activity
  on each are required.
• IF the borrower’s credit only contains non-traditional credit history, THEN the borrower
  must provide four non-traditional verifications, each of which must indicate a 12-
  month history. One of the four verifications must be a primary housing (mortgage or
  rent) payment history. The other three verifications may be utilities, insurance,
  receipts for cash rental payments or any other documented non-traditional credit
  source.

* A tradeline is defined as a revolving or installment payment account. The tradeline must not be in dispute
  and must clearly belong to the borrower in order to be eligible for consideration. Collections, judgments,
  charge-offs, repossessions, foreclosures, bankruptcy repayment plans and credit counseling do not apply.


Credit — FICO Handling
Radian requires a valid FICO score in order to price the loan for mortgage insurance
and for the score to be considered in the credit decision for the Radian “A Minus”
program. Radian recognizes current Agency FICO score selection methods as the
industry standard. Lenders may contact their Radian Risk Management to request
consideration of a specialized FICO selection method, other than Agency or Radian’s
method noted below.

FICO scores must be obtained from at least two repositories in order for the score to be
considered in the credit decision. If three repository scores are shown on the credit report,
choose the middle score; if only two scores are shown, choose the lowest. Radian utilizes
the FICO score for the primary borrower (the highest income borrower whose qualifying
income is at least 50% of the total income used for loan qualification).

Radian requires loans meet the following credit criteria to be considered under the Radian
“A Minus” program:
• FICO score of 575 or greater for the primary borrower. The primary borrower is
   defined as the highest income borrower whose qualifying income is at least 50% of
   the total income used for loan qualification. If there is no primary occupant borrower,

Replaces all prior publications and subject to change, with notice.

Page 4 of 14                              Effective date: January 31, 2007          Radian A Minus Guidelines
     as defined, then all borrowers to the transaction must meet the minimum FICO
     requirement of 575.
•    And maximum of 2x30, 0x60 on any housing payment (mortgage or rent) in the
     past 12 months. Rolling lates of 2x30 successively are considered 1x30 to qualify.
     All mortgages must be current at the time of subject loan application and closing,
•    And total consumer credit (revolving/installment) not to exceed:
    – 3x30 in past 12 months
    – 1x60 in past 12 months
    – Consumer credit rolling 30 day lates are acceptable; three successive
      30 day lates may count as one event.
    – More severe delinquencies are not eligible for rolling.
    – All delinquent consumer credit must be current at loan closing,
•    And charge-off/collection accounts >$2500 (cumulative balance) must be paid
     at or before closing. Medical collections of any amount must show a resolution
     plan in place.
•    Bankruptcies must be discharged two years prior to the date of application
     and satisfactory credit re-established.
•    No foreclosures, short sales or deed in lieu of foreclosure two years prior to the
     date of application and satisfactory credit re-established.

If a valid FICO score is not provided or unavailable for the borrower(s), a verified credit
history must comply with all of the credit criteria noted above in order to be eligible for
Radian mortgage insurance under Radian’s “A Minus” guidelines and pricing. Loans
without a valid FICO score, or with no FICO score, must be submitted to a Radian
Service Center for review. Please provide a completed Radian Sticker Application,
a completed 1008 & 1003, credit report (along with alternative credit information if
credit report information does not meet Radian’s minimum criteria) and the subject
property appraisal.


General Pricing Information
Radian lenders may have their own unique criteria to classify their loan programs as
“A Minus,” with or without an exact match to Radian’s “A Minus” guidelines. In this
case, lenders should advise Radian of this classification upon submission of the loan to
Radian for mortgage insurance. Mortgage insurance pricing will be reflective of Radian
“A Minus” rates based on the FICO score of the primary borrower.

Please refer to page two for the underwriting and pricing philosophy of loans receiving
certain Agency automated underwriting system responses. For all other loans, the
primary borrower as defined herein, must have a FICO score of 575 or greater in order
to be eligible for pricing or underwriting under the Radian “A Minus” program.

Replaces all prior publications and subject to change, with notice.

Page 5 of 14                              Effective date: January 31, 2007   Radian A Minus Guidelines
Please refer to the Radian “A Minus” rate card for specific pricing criteria or contact
your Radian representative for additional information.


General Radian Requirements
• Guidelines not specifically addressed herein default to traditional FannieMae/
  FreddieMac guidelines, i.e., non-Desktop Underwriter/non-Loan Prospector.
• Submitting lender must be a Radian Master Policy holder.
• Loans originated by a third party must first be underwritten by the submitting
  lender before submission to Radian for mortgage insurance.
• Fixed rate or fully amortizing adjustable rate mortgages are the only eligible
  loan programs, maximum 40-year amortization.
• Loans with an amortization period and/or a Note term greater than 40-years up to 50-
  years are eligible subject to the following conditions:
  • Scheduled or potential negative amortization is not eligible
  • Manufactured housing is not eligible
  • Property is limited to 1 unit, primary residence only
  • Maximum 95% LTV
  • Maximum Note term is 50-years
• First mortgages only


Borrower Qualification
Radian, by licensing and Corporate Charter restrictions, cannot provide mortgage
insurance services to corporations, partnerships, or limited partnerships (LLCs).
Corporate and business tax ID numbers are unacceptable. Radian will only provide
mortgage insurance services to individuals, with the exception of living/inter-vivos trusts.

Individual Tax Identification Number (ITIN)
Loans to borrowers having an Individual Tax Identification Number (ITIN) in lieu
of a Social Security Number are ineligible for Radian mortgage insurance and contract
underwriting services. ITIN numbers are issued regardless of immigration status of the
applicant and, as such; do not allow identification as to resident or non-resident aliens
and legal or illegal immigrants. Radian will consider exceptions, on an individual basis.
Please contact your Radian representative concerning an exception request.

An ITIN is a tax processing number issued by the IRS. Although an ITIN is formatted
like a Social Security Number, all ITINs begin with the number 9 and contain a 7 or 8 as
the fourth digit (9xx-7x-xxxx or 9xx-8x-xxx).



Replaces all prior publications and subject to change, with notice.

Page 6 of 14                              Effective date: January 31, 2007   Radian A Minus Guidelines
Ratios
1. Fixed Rate
    • Includes positively amortizing ARMs with an initial fixed rate and payment period
      of five years or more.
    Primary Residence & Second Home
    • 50% Debt to Income Ratio (DTI)
    • Temporary buydowns qualified at start rate, ratios of 50%. Temporary buydowns
      are eligible up to 95% LTV on loans with a FICO score <620.
    • Permanent buydowns qualified at the note rate.

    Investment Property
    Ineligible for Radian’s A Minus program, regardless of any AUS response.

2. Adjustable Rate Mortgages
    Interest Rate Caps
    Radian requires that all adjustable rate mortgages include an interest rate cap. The
    following represents Radian’s maximum interest rate caps for ARMs:

         ARM Product                      Initial Cap                 Periodic Cap   Lifetime Cap
           6 Month                            1%                           1%             6%
            1 Year                            2%                           2%             6%
            3 Year                            3%                           2%             6%

Primary Residence & Second Home
All ARMs with a LTV greater than 95% and FICO less than 620 must have an initial
fixed interest rate period of five (5) years or greater, regardless of any AUS response. For
example 5/1 and 7/1 ARMs are eligible, however, 3/1 and 1-year ARMs are ineligible.
   • 50% DTI
   • 1% ARMs – maximum 1% annual interest rate cap (rate changes every 12 months)
     interest rate qualifies at the Note start rate. Note: Not eligible at > 95% LTV.
   • ARMs with annual interest rate cap greater than 1% and adjustment frequency
     greater than or equal to annually qualify at the maximum interest rate that can be
     in effect at the first change date (typically the 2nd year interest rate). Note: Not
     eligible at > 95% LTV.
   • ARMs with annual interest rate cap greater than 1% and adjustment frequency
     less than annually qualify at the fully indexed accrual rate (FIAR). Note: Not
     eligible at > 95% LTV.
   • ARMs with scheduled or potential negative (including Option ARMs) amortization
     are ineligible for mortgage insurance.
   • All other ARMs, for example 5/1 or 7/1 ARMs, qualify at the start rate.
Replaces all prior publications and subject to change, with notice.

Page 7 of 14                              Effective date: January 31, 2007           Radian A Minus Guidelines
    • The six month and one year LIBOR index are available for all Radian
      adjustable rate mortgage programs.

    Investment Property
    Ineligible for Radian’s A Minus program, regardless of any AUS response.

Income & Assets
Traditional full documentation or alternative documentation (pay-stubs, bank statements)
as defined by Fannie Mae/Freddie Mac guidelines.

Borrower Equity
The borrower is required to have the following minimum equity or down payment
from their own funds as follows:
• Primary Residence — 3%
• Second Home — 5%
• Investment Property – Ineligible for Radian’s A Minus program, regardless of any
   AUS response.

Gift Funds
Gifts from immediate family members are acceptable, provided the borrower(s) has the
minimum equity/cash down payment.

Reserves
• For loans underwritten by either of the Agency automated underwriting systems,
   Radian will continue to rely on the Eligible responses relative to reserve requirements.
   Lenders are encouraged to document reserves as often as possible in order to provide
   a more detailed risk profile of the borrower.
• For Agency Ineligible responses and all other loans not underwritten by an Agency
   automated underwriting system, Radian reserve requirements are as follows:
  – Owner occupied properties do not generally require cash reserves or other liquid
    assets after closing.
  – For second homes, Radian would require six months PITI cash reserves or other
    liquid assets after closing.

Seller Contributions
Closing costs typically paid by the borrower, but paid on behalf of the borrower
by an interested party, are subject to the following limitations:

          LTV                     Primary Residence                     Second Home
          100%                             3%                           Not available
          97%                              3%                           Not available

Replaces all prior publications and subject to change, with notice.

Page 8 of 14                              Effective date: January 31, 2007              Radian A Minus Guidelines
          95%                                  3%                            3%
          90%                                  6%                            6%

Non-Occupant Co-Borrower
Non-Occupant Co-Borrowers are not permitted under Radian’s A Minus Program.

Resident Aliens
• Permanent resident aliens, living in the United States with a documented green card,
   are eligible for all Radian insurance products.
• Non-permanent resident borrowers are eligible as 1 unit primary residence 90% LTV,
   with all necessary assets in U.S. funds, and showing two years of employment and
   credit history in the U.S.
• Non-resident aliens/foreign nationals/diplomats are not eligible.


Investment Property Requirements
• All non-owner occupied / investment properties are ineligible, regardless of the AUS
  response.
• All 3-4 unit properties are ineligible (owner and non-owner occupied), regardless of
  the AUS response.


Property Qualifications/Restrictions
Ineligible Property Categories
The following property categories are ineligible for Radian mortgage insurance:
• Condotels
• Single wide manufactured homes
• Mobile homes
• Time share properties
• Lot loans
• Interim construction loans

Manufactured Housing
• First lien, owner occupied primary residence properties only.
• Multi-width, One-family dwellings
• Cash-out refinances are not permitted.
• Permanently affixed to the lot; legally classified and taxed as real estate.
• Minimum 1,000 square feet of living area
• Must assume the characteristics and functional utility of site-built housing.
• See Radian online publication RAC089 12/03 for further information on
  Manufactured Housing at http://www.radian.biz/pdf/manufactured_guidelines.pdf.


Replaces all prior publications and subject to change, with notice.

Page 9 of 14                              Effective date: January 31, 2007        Radian A Minus Guidelines
Co-ops
Co-ops are ineligible for Radian A Minus program.

Condominium/Attached PUD
• Must be primary residence or second home. Investment properties are not eligible.
• Investor concentration generally limited to 40% of project.
• Generally, minimum 1,000 sq. ft. per unit; variations for local markets must be
   supported by three comparables in the appraisal report with similar square footage.
• Must be warrantable to Freddie Mac or Fannie Mae.
• The following LTV and/or FICO restrictions apply:
                                                 Minimum FICO        Maximum LTV
   Purchase,         Primary
   Rate/Term Refi Residence                           600                  95%
                     Second Home                      600                  95%
   Cash-out          Primary
   Refinance         Residence                        600                  90%
                     Second Home                      600                  90%
Construction Permanent
• Primary residence or second home, one unit.
• May be considered as a purchase or as a refinance; LTV can be based on the
   lower of the acquisition cost or appraisal value.
• Twelve-month commitment, eligible for extension.

Geographic Guidelines
This section references geographic guidelines that are applicable to the Radian
“A Minus” program.

• Alaska — Not eligible for Radian mortgage insurance.
• Florida (Dade/Broward County/Miami MSA)
     – For all Radian programs, maximum of three Radian-insured loans per borrower.
        At least one loan must be primary residence. Otherwise, Radian maximum risk
        exposure, as defined herein, would apply.
• Guam — Not eligible for Radian mortgage insurance.
• Hawaii — Not eligible for Radian mortgage insurance.
• New York
     – Attached housing exceeding 90% loan to value in Bronx, Queens,
        New York, Kings and Richmond counties is not eligible.
     – Negative amortization, potential and scheduled, is ineligible.
• Puerto Rico — Not eligible for Radian mortgage insurance.
• U.S. Virgin Islands — Not eligible for Radian mortgage insurance.
• Utah (Davis, Salt Lake and Weber counties)
Replaces all prior publications and subject to change, with notice.

Page 10 of 14                             Effective date: January 31, 2007   Radian A Minus Guidelines
         – Maximum of two Radian-insured investment property loans per borrower or
           $100,000 total risk exposure for all borrower properties, whichever comes first.
Appraisal Information
Full appraisal documentation is required (URAR); Form 2055 Interior/Exterior
Inspection is acceptable when Desktop Underwriter or Loan Prospector condition for it.
Lenders must request and receive Radian’s prior approval to utilize an Automated
Valuation Model (AVM) in lieu of an appraisal.

Radian does not wish to insure any loan with maximum financing when the subject
property appraisal indicates one or more of the following:
• located in a declining market,
• neighborhood with an over-supply of homes for sale, and/or
• marketing time is greater than six months.

If the appraisal contains one or more of the above characteristics, the appraiser should
adequately explain the trend and specific factors contributing to the current conditions.
The maximum LTV category allowed, under these conditions would then be lowered to
the next category (i.e., generally 5% lower).


Maximum Loans to One Borrower Policy

Maximum Mortgage Insurance Risk Exposure
Radian’s maximum risk exposure policy for mortgage insurance is the lesser of $300,000
insured risk exposure* or four (4) insured properties to one borrower. The property type
mix may only consist of a primary residence, one (1) second home, and a maximum of
two (2) investor loans. All Radian investor guideline and requirements still apply.
 * Mortgage insurance insured risk exposure is calculated by using the original mortgage amount times
   the percentage of MI coverage. For example, a $100,000 mortgage with 25% coverage equals
   $25,000 mortgage insurance risk exposure.


The policy is further defined to include the following limitations as to Radian’s non-A/
full documentation programs:

• Alternative A programs are limited to one (1) insured property per individual
  borrower.
• A Minus programs are limited to two (2) insured properties to one borrower. Although
  we will insure up to two (2) properties under A Minus programs, in cases where a
  borrower has a loan under an Alternative A program, the maximum A Minus exposure
  is limited to one (1) loan. This event is unlikely to occur based on the minimum FICO
  score requirement of Alternative A programs.

Replaces all prior publications and subject to change, with notice.

Page 11 of 14                             Effective date: January 31, 2007        Radian A Minus Guidelines
Maximum Compliance Loans to One Borrower
Radian’s policy for maximum compliance loans to one borrower is the lesser of five (5)
loans or $1,000,000 aggregate loan amount, not to exceed the investor’s own guideline
for maximum exposure to one borrower. The aggregated loan amount is determined by
totaling the entire loan amounts for all active loans. Within the above restriction, loans
submitted under less than full documentation or no documentation programs are limited
to four (4) properties per borrower. This includes the loan file(s) currently under
consideration as well as any and all Radian compliance-underwritten loans for that
borrower in the past two years and not currently in declined status.


General MI Restrictions

Interest Only
Interest only (I/O) loans are not eligible for Radian’s A Minus product.
• Radian will not insure I/O on any loan with a FICO score less than 620.
• Radian will not insure I/O on any loan that the lender has categorized as A Minus,
   regardless of the FICO score.
• Radian will not insure I/O on any loan receiving a Desktop Underwriter EA I, II,
   III/Eligible or Ineligible, or Loan Prospector Caution/Eligible or Ineligible with
   a Code 500 Message.

Temporary Buydown
Primary Residence and Second Home
• Qualified at the start rate
• DTI ratio 50%
• Temporary buydowns are eligible up to 95% LTV on loans with a FICO score <620.

Investment Property
Ineligible for Radian’s A Minus program, regardless of any AUS response.

Option ARM - Adjustable Rate Mortgages
Option ARMs are ineligible for Radian’s Standard A Minus program.

Negative Amortization
All negative amortization loans, whether potential or scheduled negative amortization,
are ineligible for Radian’s A Minus program.




Replaces all prior publications and subject to change, with notice.

Page 12 of 14                             Effective date: January 31, 2007   Radian A Minus Guidelines
Ineligible Loan Categories
The following types of loans are ineligible for Radian mortgage insurance:
• Government loans (FHA/VA/Rural housing Service)
• Sub-prime mortgages
• Second mortgages
• Credit upgrades
• Wraparound mortgages
• Blanket mortgages

Refinances
Refinance Restrictions
• Cash-out refinances maximum of 90% LTV for one to two unit, primary residence
   and maximum 90% LTV for one unit second homes only.
• Maximum cash-out restrictions apply (see A Minus guidelines table page one), which
   includes consolidation debts paid.
• Cash-out refinances are not eligible for investment property or 3–4 unit properties.

The following criteria apply for eligible Radian A Minus refinances:
• No seasoning requirements on existing first mortgage for rate/term. Cash-out
  refinances require 12 months seasoning.
• Unless documented as a purchase money junior lien, any subordinate liens included
  in the refinance should be seasoned at least 12 months and satisfied of record at loan
  closing, or the loan must be considered a cash-out refinance.

Delegated Authority
Radian continues to expect our valued lending partners to exercise prudent underwriting
judgment under their Radian delegated authority. Radian program underwriting
guidelines apply for all submission types (manual, EDI, MI Online).

Please note: Radian underwriting staff continues to retain the option to request additional
documentation on any loan submitted under a lender’s delegated mortgage insurance
authority with Radian.

Radian’s MI Online
Radian’s MI Online system is a data entry system for convenient transmission of
information to Radian by delegated lenders for the ordering of mortgage insurance.
Use of Radian’s MI Online system does not relieve the lender of any representations/
warranties associated with their Radian delegated underwriting authority level. Non-
delegated lenders are only permitted to utilize Radian’s MI Online when a loan has been
underwritten via either Fannie Mae’s Desktop Underwriter with a response of
Approve/Eligible or Freddie Mac’s Loan Prospector with a response of Accept/Eligible.

Replaces all prior publications and subject to change, with notice.

Page 13 of 14                             Effective date: January 31, 2007   Radian A Minus Guidelines
Submission Requirements
• Delegated: Submission to Radian requires a minimum of the completed 1008 and a
  completed Radian MI Sticker Application. “A Minus” must be clearly noted in the
  Radian product section of the MI Sticker. The investor, program name, automated
  underwriting system and response (if applicable) and the FICO score must be clearly
  noted in the appropriate section of either the 1008 or MI Sticker Application.

• Non Delegated: Submission to Radian requires a minimum of the completed 1008,
  1003, credit report, appraisal and a Radian MI Sticker Application. “A Minus” must be
  clearly noted in the Radian product section of the MI Sticker. The investor, program
  name, automated underwriting system and response (if applicable), and the FICO
  score must be clearly noted in the appropriate section of either the 1008 or MI Sticker
  Application.




Replaces all prior publications and subject to change, with notice.

Page 14 of 14                             Effective date: January 31, 2007   Radian A Minus Guidelines

				
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