The firm says it will add clarity and consistency for lenders and servicers
Mortgage insurer Radian Guaranty has launched a new master policy after consultation with USMI (US Mortgage Insurance) and its members and the GSEs.
It’s been almost 6 years since the firm last updated its policy and it says that the latest version will prove greater clarity and consistency across almost all mortgage insurers.
“The new Master Policy allows Radian to focus even more on what we do best: helping ensure the American dream of homeownership,” said Radian’s Chief Executive Officer Rick Thornberry. “The new policy offers servicers and lenders consistency, clarity and our commitment to provide uniform mortgage insurance rescission relief with the continuation of our Confident Coverage ® promise.”
The new policy includes the Amended and Restated GSE Rescission Relief Principles, which Fannie Mae and Freddie Mac finalized in September 2018. They include:
- 36-month rescission relief, which will remain the same as structured in Radian’s 2014 Master Policy. Loans for which the borrower has made all payments from their own funds and that have no more than two 30-day and no 60-day or greater delinquencies in the first 36 months receive 36-month rescission relief.
- 60-month rescission relief will be available for loans that were not eligible to receive 36-month rescission relief. Under the new 60-month rescission relief, loans for which the borrower has made all payments from their own funds and are current at month 60 or cure in a subsequent month will qualify for rescission relief at that time.
- Early Validation Confident Coverage rescission relief will become effective immediately upon successful validation of the loan’s Origination and Closing Files for participating customers.
- 12-month Confident Coverage rescission relief with a “Closing Document Exception” is available for non-delegated MI applications. Customers will obtain 12-month rescission relief on approved MI applications upon successful validation of the loan’s Origination File without having to submit the Closing File to Radian. To qualify for 12-month Confident Coverage, the borrower must make their first 12 payments timely from the borrower’s own funds.