RICHMOND, Va., Feb. 11, 2013 /PRNewswire/ -- Lenders now are able to offer simplified and expanded national mortgage underwriting guidelines that allow lower credit scores and eliminate nearly all geographic restrictions using new Simply Underwrite (SM) guidelines from Genworth U.S. Mortgage Insurance (USMI), a unit of Genworth Financial, Inc. (NYSE: GNW).
Genworth USMI's Simply Underwrite guidelines collapse several current sets of underwriting guidelines, based on institution type, origination channel and other factors, into one expanded national underwriting standard for loans approved by Desktop Underwriter® (DU) or Loan Prospector® (LP), the automated underwriting systems (AUS) of the Federal National Mortgage Association (Fannie Mae) or Federal Home Loan Mortgage Corporation (Freddie Mac), respectively.
"Simply Underwrite provides expanded guidelines that are easy for customers to understand and use, while maintaining prudent underwriting standards that allow us to appropriately manage risk," said John Clifford, senior vice president, commercial operations of Genworth USMI.
Simply Underwrite guidelines provide the same pricing, flexibility and ease of use to all Genworth USMI mortgage lender customers, from national mega-lenders to community banks and credit unions. The new guidelines allow loan originators and processors to quickly determine if a loan is eligible for mortgage insurance coverage from Genworth USMI.
Eligible DU "Approve" and LP "Accept" loans that meet the Simply Underwrite eligibility grid can be insured with these simple overlays:
- Minimum borrower contribution of at least 3 percent from borrower's own funds;
- Full URAR appraisal or Fannie Mae Form 2055 exterior-only inspection;
- Verbal verification of employment obtained within 30 days prior to loan closing; and
- Condominium/cooperative Unit project approval considerations.
Genworth USMI also now offers one set of guidelines with increased flexibility for lenders who submit non-AUS loans.
The expanded Simply Underwrite guidelines, which allow Fair Isaac and Company (FICO) credit scores as low as 660 for most borrowers purchasing a home with a five percent down payment, will help lenders support the recovering housing market. The expanded guidelines also will remove geographic and property-type restrictions in all markets except for attached housing units in Florida, which still will require Genworth USMI to underwrite to determine eligibility for mortgage insurance coverage. The simplified guidelines also will allow debt-to-income ratios up to 45 percent. The guidelines apply to both retail and third-party originators.
Clifford said Genworth USMI will closely monitor the performance of loans under the new guidelines, but noted that loans from customer segments already using similar expanded guidelines have a history of good performance.
The Simply Underwrite guidelines are part of Genworth USMI's Simplify MI(SM) program dedicated to saving lenders time and boosting their business. Simplify MI extends the company's commitment to offer lenders additional value beyond a competitive price. Genworth USMI already has the fastest approval times in the industry, and offers live scenario modeling for customers through its ActionCenter®.
To learn more about Simply Underwrite, customers can contact their account representative, go to www.mortgageinsurance.genworth.com, or they can call Genworth USMI's ActionCenter® at 800-444-5664, or Action.Center@genworth.com.
About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a leading Fortune 500 insurance holding company dedicated to helping people secure their financial lives, families and futures. Genworth has leadership positions in offerings that assist consumers in protecting themselves, investing for the future and planning for retirement -- including life insurance, long term care insurance, financial protection coverages, and independent advisor-based wealth management -- and mortgage insurance that helps consumers achieve home ownership while assisting lenders in managing their risk and capital.
Genworth has approximately 6,300 employees and operates through three divisions: U.S. Life Insurance, comprising the U.S. Life Insurance segment, which includes life insurance, long term care insurance (LTC) and fixed annuities; Global Mortgage Insurance, containing U.S. Mortgage Insurance and International Mortgage Insurance segments; and the Corporate and Other division, which includes the International Protection, Wealth Management and Runoff segments. Its products and services are offered through financial intermediaries, advisors, independent distributors and sales specialists. Genworth Financial, Inc., headquartered in Richmond, Virginia, traces its roots back to 1871 and became a public company in 2004. For more information, visit genworth.com. From time to time, Genworth Financial, Inc. releases important information via postings on its corporate website. Accordingly, investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information is found under the "Investors" section of genworth.com.
SOURCE Genworth Financial, Inc.