DTI Ratio
∙ 41% Total DTI, nonfixed-rate/payment < 5 years ∙ 45% Total DTI, fixed-rate/payment ≥ 5 yearsProgram Notes
∙ Loans require an MGIC MI Underwrite/Full-Doc Review (UWG 1.05.03) ∙ Eligible properties must:
− Have the intended use and enjoyment for the exclusive benefit of the homeowner
− Have full kitchen facilities with standard-sized appliances
− Be outside the geographic location of the primary residence
− Be a reasonable distance from the borrower’s primary residence
− Be suitable for year-round occupancy
− Have separate rooms for living and sleeping
− Have no lock-out bedrooms
− Not be part of a rental pool agreement
− Be located in a resort or recreational area
∙ The borrower must own no residential properties other than the primary residence ∙ Rental income is not considered for qualification purposes
∙ Maximum MI coverage: 90% LTV, 25%; 85% LTV, 12%
3.02.05a HARP Refi-to-Mod (RTM) Loans
3.02.05b MGIC Non-HARP Loans — Same Insured/Servicer Refi-to-Mod (RTM) 3.02.05c MGIC Non-HARP Loans — New Insured/Servicer Refi-to-Mod (RTM)
3.02.05a HARP Refi-to-Mod (RTM) Loans
Loans must meet Section 1 and Section 3 requirements.
Eligible Loans
∙ Loan being refinanced is currently insured by MGIC ∙ Loan being refinanced:
− Is owned or guaranteed by Fannie Mae and meets all requirements for Refi Plus™ or DU Refi Plus™ OR
− Is owned or guaranteed by Freddie Mac and meets all requirements for Relief Refinance MortgagesSM Same Servicer or Open Access
∙ Requirement changes made by either Fannie Mae or Freddie Mac will be considered notices provided by MGIC for purposes of MGIC’s HARP RTM program, unless MGIC provides notice that it is limiting the announced changes
Coverage Percentage No change to existing coverage from the original loan Premium Rate No change to existing premium rate from the original loan Submission Options ∙ Send data via the Loan Center
∙ Send PDFs of the documents listed below through the Loan Center ∙ Fax the documents listed below to your MGIC Underwriting Service Center
Documentation ∙ HARP RTM Request form or other MGIC-approved form indicating Program Code: RTOM ∙ New 1003/65
∙ New 1008/1077 Insured Represents
∙ The loan is eligible for a HARP refinance
∙ All requirements of the applicable Fannie Mae’s Home Affordable Refinance options or Freddie Mac’s Relief Refinance MortgagesSM are met
∙ The refinanced loan has been delivered to Fannie Mae or Freddie Mac
Disaster Policy
In areas affected by hurricanes or other significant disasters affecting multiple properties, we require that you obtain an exterior-only inspection report to determine whether the subject property was materially damaged from the event. The inspection report does not need to be submitted to MGIC, but should be retained in the refinance loan file.
∙ The transaction remains HARP RTM-eligible if:
− there is no material damage
− there is material damage, but the property is restored to its pre-event condition before the refinance is closed
∙ The transaction is no longer HARP RTM-eligible if:
− there is material damage, and the property is not restored to its pre-event condition before the refinance is closed
Questions? Contact your Underwriting Service Center, www.mgic.com/uwoffice.
Eligible Loans ∙ MGIC-insured loans closed prior to June 1, 2009
∙ Non-HARP Same Insured/Servicer Refi-to-Mod requests must be submitted to MGIC by the current Insured/Servicer
Borrower Benefit The borrower’s sustainable ability to repay the loan must be improved through either a lower payment or a more stable loan instrument.
Borrower Changes ∙ A borrower may be removed if the remaining borrower has evidence of making the mortgage payments for the most recent 12 months, and the borrower being removed is also removed from the property title ∙ A borrower may be added if one or more original borrowers remain
Coverage Percentage No change to existing coverage from the original loan Premium Rate No change to existing premium rate from the original loan Premium Plan Can change from lender-paid monthly to borrower-paid monthly Loan Purpose
Rate/term refinance can include:
∙ The payoff of the original loan
− Payoff is defined as the UPB plus interest accrued through the pay-off date, not to exceed 45 days of interest ∙ Reasonable and customary closing/financing costs and prepaids are allowed, but may not exceed 4% of
the UPB of the original loan or $5,000, whichever amount is less ∙ Existing secondary financing must be resubordinated
Cash Back The borrower can receive up to $250 cash back at closing. Cash back greater than $250, as identified on the HUD-1 Settlement Statement/Closing Disclosure, must be applied as a principal curtailment to the refinance loan.
Loan Type ∙ Fixed-rate
∙ Fully amortizing ARM with a minimum of 5 years before the first rate change
∙ Ineligible: Interest-only; GPM; potential neg-am; scheduled neg-am; temporary buydown Mortgage Payment History Must be current
DTI Ratio No maximum DTI
Property Type Cannot change from the original loan Occupancy ∙ Primary residence or same as original loan
∙ Primary residence cannot change to investment or second home ∙ Investment or second home can change to primary residence
LTV No maximum LTV
CLTV ∙ No maximum CLTV
∙ No new secondary financing
∙ Existing secondary financing must be paid in full or resubordinated Property Value MGIC relies on the property valuation from the original loan.
Submission Options ∙ Send data via the Loan Center
∙ Send PDFs of the documents listed below through the Loan Center
∙ Fax the documents listed below to your MGIC Underwriting Service Center, www.mgic.com/directory Documentation ∙ Same Insured/Servicer Refi-to-Mod Request (form #71-42939)
∙ New 1003/65 ∙ New 1008/1077 Program Notes
∙ MGIC treats the new loan as a loan modification and continues to rely on the truth and accuracy of the information that was represented in connection with insuring the original loan
∙ MGIC relies upon the Insured/Servicer’s representation that the new loan complies with the RTM program requirements
∙ Loans that do not meet the MGIC RTM program requirements may be considered if they meet our standard requirements
Eligible loans
∙ MGIC-insured loans closed prior to June 1, 2009
∙ Non-HARP New Insured/Servicer Refi-to-Mod requests must come from a lender that is not the current Insured/Servicer
∙ MGIC’s Non-HARP New Insured/Servicer Refi-to-Mod program may not be available in all states Modification Premium MGIC requires a 50-basis-point modification premium, which can be financed, to activate the modification.
Borrower Benefit The borrower’s sustainable ability to repay the loan must be improved through either a lower payment or a more stable loan instrument.
Borrower Changes ∙ A borrower may be removed if the remaining borrower has evidence of making the mortgage payments for the most recent 12 months, and the borrower being removed is also removed from the property title ∙ A borrower may be added if one or more original borrowers remain
Coverage Percentage No change to the coverage from the original loan
Premium Rate No change to the premium rate from the original loan; premiums on the original loan must be paid through the date of the refinance loan closing
Premium Plan Can change from lender-paid monthly to borrower-paid monthly Loan Purpose
Rate/term refinance can include:
∙ The payoff of the original loan
− Payoff is defined as the UPB plus interest accrued through the pay-off date, not to exceed 45 days of interest ∙ Reasonable and customary closing/financing costs and prepaids are allowed, but may not exceed 4% of
the UPB of the original loan or $5,000, whichever amount is less
− The modification premium is not included in this limit ∙ Existing secondary financing must be resubordinated
Cash Back The borrower can receive up to $250 cash back at closing. Cash back greater than $250, as identified on the HUD-1 Settlement Statement/Closing Disclosure, must be applied as a principal curtailment to the refinance loan.
Loan Type ∙ Fixed-rate
∙ Fully amortizing ARM with a minimum of 5 years before the first rate change
∙ Ineligible: Interest-only; GPM; potential neg-am; scheduled neg-am; temporary buydown Mortgage Payment History Must be current
DTI Ratio ∙ If P & I is not increasing, there is no maximum DTI ∙ If P & I is increasing, maximum DTI is 45%
− Verify income and liabilities Property Type Cannot change from the original loan Occupancy ∙ Primary residence or same as original loan
∙ Primary residence cannot change to investment or second home ∙ Investment or second home can change to primary residence
LTV Maximum LTV: 125%
CLTV ∙ No maximum CLTV
∙ No new secondary financing
∙ Existing secondary financing must be paid in full or resubordinated
Property Value The refinance loan LTV is based on the current property value. The lender is responsible for the accuracy and validity of the current property value. MGIC does not require a specific valuation form.
Submission Options ∙ Send PDFs of the documents listed below through the Loan Center
∙ Fax the documents listed below to your MGIC Underwriting Service Center, www.mgic.com/directory
Documentation
∙ New Insured/Servicer Refi-to-Mod Request (form #71-42954) ∙ New 1003/65
∙ New 1008/1077
∙ Document income per MGIC’s MGIC MI Underwrite/Full-Doc Review (1.05.03), regardless of Agency AUS income documentation requirements
Questions? Contact your Underwriting Service Center, www.mgic.com/uwoffice.
3.03 Loan Purpose
3.03.01 Purchase Loan 3.03.02 Rate/Term Refinance 3.03.03 Cash-Out Refinance 3.03.04 Other Loan Purposes
3.03.01 Purchase Loan
A loan whose proceeds are used to acquire a residential property