Radian Guaranty: Ensuring the American Dream with MI MJ Watkins September 2015

Transcription

1 Radian Guaranty: Ensuring the American Dream with MI MJ Watkins September 2015

2 Objective Position Mortgage Insurance (MI) as a resource by helping you understand how to leverage MI to: Expand homeownership to MORE families Save your homebuyers MORE money Increase the purchasing power of your homebuyers Help homebuyers achieve homeownership quicker with lower down payments

3 Did You Know? Years to Save a Down Payment Source: USMI

4 Did You Know? Need for Private Mortgage Insurance Source: USMI

5 Did You Know? MI Makes Homeownership a Reality Source: USMI 5

6 Did You Know? Private MIs Paid > $45 Billion in Claims Source: USMI

7 FHA and Mortgage Insurance Share of the Purchase Origination Market

8 Facts about Conventional Loans with MI MI is available for use on a wide variety of loan products Ask your Lender Partners about conventional loans with Radian MI You owe it to your Home Buyers

9 Trivia Question MORTGAGE INSURANCE (MI) HELPS A. Facilitate low down-payment lending B. Makes loans less risky C. Reduce taxpayers exposure D. A & B only E. All of the above

10 Smart Alternative to FHA Either private mortgage insurance (MI) or an FHA-insured loan can help your clients buy a home for less than 20% down. Comparing the cost of private MI and FHA, MI can be a better option for your clients by Providing lower monthly payments Saving thousands ($$$$) over the life of the loan Affording more home for the same monthly payment Providing more purchasing power for their future home. Providing option of cancelling MI once 80% LTV is achieved

11 Return of 97% Financing 3% downpayments back again + affordable property values + historically low rates = the perfect market conditions to attract first-time homebuyers! Plus under One Underwrite, loans are eligible for Radian MI with DU Approval/Eligible or LP Accept/Eligible* and a minimum 620 FICO. *Available upon Freddie Mac release. 11

12 MortgageAssure Program 12

13 Smart Alternative to FHA Lower Monthly Payments Radian s MI Monthly vs. FHA on 95% LTV FHA MI Monthly Sale Price $250, Base Loan $237, Upfront Premium Rate 1.75% Upfront Payment $4, Gross Loan $241,656 $237, Note Rate 3.75% 4.00% P&I Payment $1,120 $1,134 MI Rate.80%.62% MI Payment $158 $123 Total Monthly Payment $1277 $1257 Monthly savings of $20 & yearly savings of $240! Assumes: 30 year amortization, 1 unit, 720 FICO, Purchase Reflects FHA Rates Effective January 2015 and Radian MI Pricing as of July 2014

14 Smart Alternative to FHA Lower Monthly Payments Radian s MI Monthly, Split Edge vs. FHA on a 95% LTV FHA MI Monthly Sale Price $250, Base Loan $237, Upfront Premium Rate 1.75% Upfront Payment $4, Gross Loan $241,656 $237, Note Rate 3.75% 4.00% P&I Payment $1,120 $1,134 MI Rate.80%.40% MI Payment $158 $79 Total Monthly Payment $1,277 $1,213 Monthly savings of $64 & yearly savings of $768! Assumes: 30 year amortization, 1 unit, 720 FICO, Purchase Reflects FHA Rates Effective January 2015 and Radian MI Pricing as of July 2014

15 Smart Alternative to FHA More House for the Money Radian s MI Monthly vs. FHA on 95% LTV FHA BPMI Monthly Sale Price $245, $250, Base Loan $233, $237, Upfront Premium Rate 1.75% Upfront Payment $4, Gross Loan $237, $237, Note Rate 3.75% 4.00% P&I Payment $1, $1, MI Rate.80%.62% MI Payment $ $ Total Monthly Payment $ $ More home for the same monthly payment - $4,008 more home! Assumes: 30 year amortization, 1 unit, 720 FICO, Purchase Reflects FHA Rates Effective January 2015 and Radian MI Pricing as of July 2014

16 Radian Resources Website, Calculators & Tools It is important to know what MI product will work best for your buyers. How Can you Calculate the Best Choice? By using Radian s online MI tools. Rate Finder Calculates MI Rates Loan Amount Estimator Radian Decision Calculates payment comparisons Self Employed Income Analysis Calculator

17 Radian Resources MI Rate App 1 st in the Industry! Radian Rates is a mobile version of the company s existing online rate finder and offers on-the-go access for a quick and reliable Radian MI rate. App users can simply input loan criteria and the app automatically calculates the MI rate for a variety of Radian products. Backed by the company s published rates and guidelines, Radian Rates was designed for users to check eligibility and compare options to find the product that best fits their needs.

18 Trivia Question FINANCING WITH MORTGAGE INSURANCE (MI) CAN OFFER A. Lower monthly payments B. Greater purchasing power C. More options for your clients D. All of the above E. None of the above

19 Call to Action Discuss the benefits of mortgage insurance compared to FHA with your clients Ensure your lending partners review all financing scenarios with your clients Ask your lending partners specifically for private MI from Radian Download the Radian MI Rate App and get comfortable with the tool Connect with MJ Watkins or your local Radian Rep for any questions regarding mortgage insurance (MI) Remember The more we learn, the more we earn!

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21 Radian Partner Contact Information MJ Watkins Multicultural Business Manager African-American & Asian Segments cell office

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