Mortgage Insurance Help

Transcription

1 Mortgage Insurance Help Address Line 1 Address Line 2 All Other Monthly Payments Amortization Term Amortization Type Application Number Appraisal Value Borrower's First Name Borrower's Last Name Borrower's Middle Name Borrower's Suffix Buydown Percent Calculated DTI City Co-Borrower Contact Name Coverage Credit Reporting Agency Credit Score Credit Score Reason Codes Customer Product Code Documentation Type DU/LP Recommendation Extension Loan Program Loan Purpose Loan Term Loan Type Master Policy Number Monthly Income Mortgage Insurance Type Non-Traditional Credit Note Rate Number of Units Occupancy Status Occupation Origination Channel PITI - Subject Property Premium Financed Premium Plan Present Housing Expense Property Type Refund Type Renewal Type Sales Price Social Security Number State Subject Property Net Rent Submission Type

2 Fax Number Interest Only Term Lender Loan Number Loan Amount Subordinate Financing Telephone Number Total Debt/Income Ratio Zip Code Loan Credit Score Loan Origination Company ID Loan Origination Company Name Application Number The system generated number used to identify your mortgage insurance request. Submission Type Delegated - A transaction where the mortgage insurance request for the loan is underwritten to Arch MI's guidelines by you and then submitted under Arch MI's Delegated Program (this program requires prior Arch MI approval of customer). For Delegated customers, please refer to your copy of the Delegated Endorsement which forms part of Arch MI's First Lien Master Policy for more details, or contact Arch MI Sales (Mortgage Lenders Credit Unions) or Arch Mortgage Insurance at Non-Delegated: Standard Application - A transaction where the mortgage insurance request requires a rev iew and decision from an Arch MI Underwriter, based on a complete insurance application package (including v erification of all information relev ant to the underwriting decision). Non-Delegated: EZ Application Displayed for Credit Union Customers - A transaction where the mortgage insurance request requires a review and decision from an Arch MI Underwriter; where an abbrev iated insurance application package, not including verification, is prov ided (the lender warrants that they have obtained appropriate verifications relevant to the underwriting decision). This submission type is only valid for Credit Union customers. Non-Delegated: Pre-Qualification Standard/Full - A transaction where the mortgage insurance request requires a review and preliminary decision from an Arch MI Underwriter; where a complete insurance application package (including verification of all information relev ant to

3 the underwriting decision), which may or may not include an appraisal or other property information, is submitted. A Pre-Qualification may NOT hav e an appraisal or ev en a property address identified. Non-Delegated: Pre-Qualification EZ App Displayed for Credit Union Customers - A transaction where the mortgage insurance request requires a rev iew and preliminary decision from an Arch MI Underwriter; where an abbreviated insurance application package, not including verification, is prov ided (the lender warrants that they have obtained appropriate verifications relevant to the underwriting decision), which may or may not include an appraisal or other property information, is submitted. A Pre-Qualification may NOT hav e an appraisal or ev en a property address identified. This submission type is only v alid for Credit Union customers. Non-Delegated: EZ-Refi Application Displayed for Credit Union Customers - A transaction where the mortgage insurance request requires a rev iew and decision from an Arch MI Underwriter; where an abbrev iated insurance application package is prov ided (the lender warrants that they have obtained appropriate verifications relevant to the underwriting decision and complies with Arch MI's EZ-Refinance program guidelines). This submission type is only valid for Credit Union customers. For detailed information about required documentation for all our Submission Types, click here Lender Master Policy Number Fixed Field The Master Policy Number, which auto-populates when you log on. No edit allowed. Contact Name Name of contact person at the lending institution. This auto-populates when you log on. It may be changed, if necessary. Thirty alpha-numeric positions.

4 of contact person at the lending institution. This auto-populates when you log on. It may be changed, if necessary. Telephone Number Telephone number of contact person at the lending institution. This auto-populates when you log on. It may be changed for a given application. This must be entered in the XXX-XXX-XXXX format. Ten numeric positions. Extension The telephone extension for the lender contact, if necessary. Four numeric positions. Fax Number Fax number of contact person at the lending institution. If your fax number was set up with your User Profile, this auto-populates when you log on. You may enter if it is blank. This must be entered in the XXX-XXX-XXXX format. Ten numeric positions. Lender Loan Number The ID number assigned to the loan by the lender.

5 Twenty alpha-numeric positions. Note: To change any of the Lender Information connected to your user profile please contact Origination Channel Select the Origination Channel from the drop-down list. Options are: Retail Loan funded and closed in the name of the Originating Lender and Master Policy Holder. Wholesale - Loan Originated by a broker/third party and subsequently funded/closed by a lender. Correspondent Loan originated and funded by a lender and subsequently sold to another lender or investor Other Loan originated and MI ordered in a manner different from the traditional Retail, Wholesale Correspondent channels. Loan Origination Company ID NMLS-provided ID associated with the Company that originated the loan. Fifteen alpha-numeric positions. Loan Origination Company Name

6 If a Third Party Originator or Broker originated this loan, please identify the company name here. Required if Origination Channel is Wholesale, Correspondent or Other. Forty alpha-numeric positions. Property Address Line 1 Street address of the subject property. Thirty alpha-numeric characters. Address Line 2 Second address line if needed for Apartment number, etc. Thirty alpha-numeric characters. City City where the subject property is located. Twenty alphabetic characters. State State abbreviation where the subject property is located.

7 Two alphabetic characters. Zip Code Zip Code of the subject property. Five numeric positions. Property Type A drop-down list describing the subject property. Options are: Single Family Detached - A standard home with no common areas, no homeowners' dues or sharing of common walls. A home intended to be occupied by one family. Condominium Lo-Rise - (4 stories or less) - A unit in a condominium project. Each unit owner has title to his or her individual unit, an individual interest in the project's common areas, and, in some cases, the exclusive use of certain limited common areas. Condominium Hi-Rise - (5 stories or greater) - A unit in a condominium project. Each unit owner has title to his or her individual unit, an individual interest in the project's common areas, and, in some cases, the exclusive use of certain limited common areas. Cooperative Unit - A form of multiple ownership of real estate in which a corporation, trust, or business entity holds title to a property and grants occupancy rights through purchase of stock representing the value of a particular apartment or unit. Chassis-Type Mftd Hsg - A factory-built home on a permanent frame (chassis) with a removable transportation system, delivered and permanently attached to a sitebuilt foundation. Manufactured homes are subject to federal standards established

8 by the Department of Housing and Urban Development (HUD). Modular Hsg - A home constructed on a factory assembly line, but with conventional home floor joists. Fully constructed modules are transported to the permanent site on a trailer and anchored to the foundation. Modular homes are not subject to HUD codes, but must adhere to local building codes. Panel/Pre-Fab Hsg - These factory assembly-line homes are constructed with floors, walls, and (often) roof in a small panel form, then assembled at the site and attached to the foundation. Since these homes are not assembled at the factory, quality control is generally diminished. Panelized homes are not subject to the federal standards, but must adhere to the local building codes. Multi-Family (2-4 Units) - A property that consists of a structure that provides living space for two to four families, although a single mortgage or deed of trust evidences ownership of the structure. Single Family Attached - A standard home with sharing of one or more common walls. A home intended to be occupied by one family. The system checks if the Property Type and Number of Units fields are compatible. If the type of property is Multi-Family, the Number of Units must be between two and four. The default is 'Select'. Number of Units The number of dwelling units contained in a Multi-Family property. Any value greater than one is considered 'Multi-Family'. This field is only active when "Multi-Family" is selected as the Property Type. Occupancy Status

9 A drop-down list describing the occupancy status of the subject property. Options are: Owner-Occupied Second Home Investment Property Sales Price Amount for which the subject property is sold. Please do not enter commas or dollar signs. You are not required to enter a decimal (cents). If you do, the sales price will be automatically rounded to the nearest dollar when the loan is submitted. You may leave this field blank if the Loan Purpose is a 'Refinance'. Seven numeric positions ($XXXXXXX). Appraisal Value Amount of the appraised value of the subject property. Please do not enter commas or dollar signs. You are not required to enter a decimal (cents). If you do, the appraisal value will be automatically rounded to the nearest dollar when the loan is submitted. If Loan Purpose is a Refinance, the appraised value is used to calculate the LTV. Seven numeric positions ($XXXXXXX). Primary Borrower Borrower's First Name

10 First name of the primary borrower. Fifteen alpha-numeric positions. Borrower's Middle Name Middle name of the primary borrower. Fifteen alpha-numeric positions. Borrower's Last Name Last name of the primary borrower. Twenty alpha-numeric positions. Borrower's Suffix Suffix of the primary borrower. Choose from the options on the list. Social Security Number

11 The SSN of the primary borrower. Nine numeric positions. Occupation Drop-down list of occupation codes. Select the option that describes the primary borrower. Options are: Other Self-Employed Default is 'Other' Monthly Income The field represents the monthly amount for the primary borrower. It must be stated as a monthly figure. Please do not use commas or dollar signs. You are not required to enter a decimal (cents.) If you do, the monthly income will be rounded to the nearest dollar when the loan is submitted. Seven numeric positions ($XXXXXXX). Credit Score The credit score found on the applicant's credit report. Value must be a number from 300 to 900. If the borrower has no credit on file, enter a zero (0). The score must be from Experian, Empirica or Beacon. Credit Score is not active when the Non-Traditional Credit check box is checked. For Credit Unions Only - Credit Score may be blank for an EZ Refi Application.

12 If multiple scores are provided for a borrower, use the following logic to determine the representative score to use for that borrower: - If 3 scores are provided, use the middle score - If 2 scores are provided, use the lower score Three numeric positions. Credit Reporting Agency For our Delegated customers, enter the Credit Reporting Agency from the drop down, either Equifax, Experian or TransUnion based on the credit agency which offered the Loan Rep Score and the date of the credit report in a MM/DD/YYYY format for each borrower. Additional FCRA fields are not required on Delegated HARP requests. Non-Traditional Credit If the transaction should be considered non-traditional credit based on the borrower(s) credit profile(s), click the Non-Traditional box for all borrowers. Credit scores will be removed as guideline eligibility and pricing will be based on non-traditional credit. Co-Borrower Enter information for each additional borrower (if any) the same as described for Primary Borrower. If you need to add more than one borrower, you may do so by clicking on the [Add Additional Borrower] button. A maximum of nine additional borrowers may be entered. However, only the first five borrowers will require credit scores. The second and subsequent additional Borrower sections include a button to delete the borrower from the loan.

13 Loan Loan Type Loan type is the type of repayment schedule agreed to for a loan through monthly payments of the principal and/or interest. There are generally two loan types, Fixed or Adjustable, and many variations within each type. Generally speaking, ARM rates are based on the annual rate cap for products that are not fixed for at least the first five years. To determine the annual cap - divide the rate cap at the first adjustment by the number of years until the first adjustment. Example, a 1 year ARM with 2% periodic cap would have an annualized cap of 2%. Since the annual cap is greater than 1%, the loan would get 2% ARM rates. Below are some examples to help you determine the appropriate type to select: Fixed Rate/Fixed Payment - A mortgage where the interest rate and payments remain the same for the life of the loan. 1% ARM - An adjustable-rate mortgage with a 1% annual rate adjustment cap. e.g., a six month ARM with a.5% periodic cap would have an annualized cap of 1%, thus the interest rate may increase a maximum of 1% annually. Choose this selection when your ARM structure is not detailed below and your ARM has a 1% annual adjustment cap. 2% ARM - An adjustable-rate mortgage with an annual rate cap greater than 1%. e.g., at the first adjustment the interest rate may increase a maximum of 2%. Choose this selection when your ARM program structure is not detailed below and your ARM has an annual rate cap greater than 1%. 2/1 ARM - An adjustable-rate mortgage that has an initial fixed interest rate for the first 2 years, and thereafter has a yearly interest rate adjustment. Each annual rate adjustment is based on (or "indexed to") another rate -- often the yield on a Treasury note. 3/1 ARM - An adjustable-rate mortgage that has an initial fixed interest rate for the first 3 years, and thereafter has a yearly interest rate adjustment. Each annual rate adjustment is based on (or "indexed to") another rate -- often the yield on a Treasury note. 3/3 ARM - An adjustable-rate mortgage that has an initial fixed interest rate for the first 3 years with an annual adjustment every 36 months, thereafter. 5/1 ARM - An adjustable-rate mortgage that has an initial fixed interest rate for the first 5 years and thereafter has a yearly interest rate adjustment. Each annual rate

14 adjustment is based on (or "indexed to") another rate -- often the yield on a Treasury note. 7/1 ARM - An adjustable-rate mortgage that has an initial fixed interest rate for the first 7 years and thereafter has a yearly interest rate adjustment. Each annual rate adjustment is based on (or "indexed to") another rate -- often the yield on a Treasury note. 10/1 ARM - An adjustable-rate mortgage that has an initial fixed interest rate for the first 10 years and thereafter has a yearly interest rate adjustment. Each annual rate adjustment is based on (or "indexed to") another rate -- often the yield on a Treasury note. 15/1 ARM - An adjustable-rate mortgage that has an initial fixed interest rate for the first 15 years and thereafter has a yearly interest rate adjustment. Each annual rate adjustment is based on (or "indexed to") another rate -- often to the yield on a Treasury note. 5+ Yr. ARM - Is an ARM that adjusts every 5 years, 7 years, or 10 years. This product gets fixed rates. 2 Step Mortgage - A loan where the interest rate stays the same for a stated period then has one-time adjustment, typically after 5 to 7 years. Growing Equity Mortgage - A Growing Equity Mortgage is a mortgage in which increases in the borrower's mortgage payments are used to accelerate the reduction of principal on the mortgage. Due to increased payments, the borrower acquires equity more rapidly. GPM - Fixed Rate - A fixed rate mortgage with features that allow for payment changes up to 2% per year for some fixed period of time. Transaction may not result in negative amortization (neither potential nor scheduled). Amortization Type A scheduled period of time in which the loan is repaid through agreed payments of principal and/or interest. Fully (Positive) Amortized - The payment of a mortgage in installments over an agreed-upon period, during which principal and interest are paid off in equal payments. Option Payment - Every month borrowers are given various payment options to choose from. Examples of payment options are minimum payment due, interest only

15 payment, or fully amortizing payment. Interest Only - A mortgage on which, for some period, the monthly mortgage payment consists of interest only. During this period, the loan balance remains unchanged. Potential Negative Amortization - Negative Amortization occurs when the minimum monthly payments do not cover the monthly principal and interest due. If the minimum monthly payments are not enough to cover both the interest and principal due, the difference is added to the principal, increasing the loan's outstanding balance. Loan Purpose Select the Loan Purpose from the drop-down list. Options are: Purchase - Also known as a purchase money transaction, the funds are used to finance the purchase of the subject property. Purchase-Relocation - The purchase of a dwelling by a buyer being relocated by their employer subject to the terms of an employee/employer relocation agreement. Rate/Term Refinance - The repayment of a debt from the proceeds of a new mortgage to the same borrower and that uses the same property as security. Cash-Out Refinance - The repayment of a debt from the proceeds for a new mortgage to the same borrower and that uses the same property as security, providing cash to the borrower. Construction-Purchase - The loan finances the interim construction phase and converts to the permanent financing. Typically a one-time close transaction. Construction-Refinance - A loan to finance construction of a new dwelling when the borrower owns the lot on which the dwelling will be constructed. Rehabilitation-Refinance - The repayment of a debt from the proceeds for a new mortgage to the same borrower and that uses the same property as security, providing cash that is generally paid out to a contractor to restore the subject property to good use. This Loan Purpose is only valid for Credit Union customers. Rehabilitation-Purchase - An agreement between buyer, seller and, generally, a

16 contractor, to acquire an existing dwelling and restore the property to good use. This Loan Purpose is only valid for Credit Union customers. EZ Refi - Repayment of the existing first lien, which is insured with Arch MI, to the same borrower with the same property used as security. Originator must hold the current mortgage. Refi to Mod - Repayment of the existing first lien, which is insured with Arch MI, to the same borrower with the same property used as security. The existing mortgage insurance certificate number will remain the same. Loan Amount Amount of money loaned by the lender to the borrower. Please do not enter commas or dollar signs. You are not required to enter a decimal (cents). If you do, the loan amount will be rounded to the nearest dollar when the loan is submitted. Seven numeric positions ($XXXXXXX). Note Rate Interest rate that will be on the mortgage note. In the case of fixed loans, this would be the qualifying rate. For ARM or Buydown loans, the qualifying rate is system calculated. Please enter a decimal point for the initial note rate. Initial note Rate must not be greater than 20%. Six numeric positions including the decimal point (XX.XXX) %

17 Loan Term The number of months between the first payment due on the note and the payoff date of a note, mortgage or other contract. The number of months must be greater than 36 and less than or equal to 480. Three numeric positions. Amortization Term The number of months over which the loan's repayment will be calculated. This will be greater than the Loan Term for a balloon loan. For example, a five year balloon that amortizes over 30 years (loan term = 60; amortization term = 360). The number of months must be greater than zero and no more than 480. Three numeric positions. Interest Only Term when Amortization Type is Interest Only. If an Amortization Type of Interest Only is selected then the Interest Only Term is the number of months over which the borrower(s) payment is based on the Interest only portion of the note. For example a 3/1 Interest Only ARM that amortizes over 30 years (interest only term = 36; amortization term = 360). The number of months must be between 1 and should not be more than 180. Three numeric positions.

18 Subordinate Financing The total amount of any other financing for which the borrower is responsible on the property. This information is taken from the Residential Loan Application field "Other Financing" in the Details of Transaction section of the form. Please do not enter a comma or dollar sign. Seven numeric positions ($XXXXXXX). PITI - Subject Property for Mortgage Insurance Application. Total monthly expense for Subject Property First Mortgage P&I, Second Mortgage P&I, Hazard Insurance, Taxes, Mortgage Insurance, HOA Fees, Lease/Ground Rent and other housing expenses. Please do not enter a comma or dollar sign. You are not required to enter a decimal (cents). If you do, the PITI will be rounded to the nearest dollar when the loan is submitted. Seven numeric positions ($XXXXXXX). Present Housing Expense Conditional Field The current monthly housing expense (PITI) for all the borrowers on the loan. Value is only required if Occupancy Status is Second Home or Investment Property. Please do not enter a comma or dollar sign. You are not required to enter a decimal (cents). If you do, the amount will be rounded to the nearest dollar when the loan is submitted. Six numeric positions ($XXXXXX).

19 Subject Property Net Rent Conditional Field The monthly net rental income for the subject property whether positive (revenue) or negative (expense). Value is only required if Occupancy Status is Investment Property OR Owner Occupied Multi-Family (2-4 Units). Please do not enter a comma or dollar sign. You are not required to enter a decimal (cents). If you do, the amount will be rounded to the nearest dollar when the loan is submitted. If Net Rent is negative, enter a minus sign (-) in front of the amount. Six numeric positions ($XXXXXX), zero may be entered. All Other Monthly Payments The total monthly payment for all revolving and installment liabilities, not including the subject property PITI. Please do not enter a comma or dollar sign. You are not required to enter a decimal (cents). If you do, the amount will be rounded to the nearest dollar when the loan is submitted. Five numeric positions ($XXXXX). Total Debt/Income Ratio The ratio of all debt payments of the borrowers, including proposed housing expenses, to the qualifying income of the borrowers. AKA Back End Ratio. Please enter a decimal point for the total debt ratio (e.g. If Total Monthly Debt = $3750, and Income = $10,000, then enter DTI as 37.50%). Total Debt Ratio must not be greater than 99.99%. Five numeric positions including the decimal point (XX.XX) %

20 Calculated DTI Calculated DTI is a read-only field. This system calculated field is a ratio of all debt payments of the borrowers, including proposed housing expenses, to the qualifying income of the borrowers. AKA Back End Ratio. If the calculated DTI differs more than 2% from the Total Debt Ratio entered manually, a warning will be displayed. Buydown Percent A drop-down list indicating the type of rate buydown. Buydowns may be permanent (for the life of the loan) or temporary. Options are: None 1-0 % 2-1% 3-2-1% The default is 'None'. Documentation Type Use the following criteria to identify your selection: Type When Used Income Assets Employment Ratios Full Manually underwritten loan or non DU/LP decision Prov ided and Verified Prov ided and Verified Information Prov ided & Verified Calculated NOTE: This field performs an edit with the Borrower/Additional Borrower(s) Income field to confirm that the Monthly Income is required. The default is 'Full'.

21 DU/LP Recommendation If you have submitted your loan to Fannie Mae or Freddie Mac, please select one of the options in the drop down list. None DU Approve/Eligible DU Approve/Ineligible DU Out of Scope DU Refer with Caution/IV DU Refer/Eligible DU Refer/Ineligible LP Accept/Eligible LP Accept/Ineligible LP Caution/A-Minus Eligible LP Caution/Eligible LP Caution/Ineligible Loan Credit Score This field is display-only and cannot be changed unless the credit scores associated with the borrowers on the Borrower screen are changed. Credit Score Reason Codes For the borrower whose credit score is used for loan qualification, enter the 4 credit factors shown on the credit report for that credit reporting agency. Use the drop down menu with numbers and descriptions to enter the credit score factors. Additional FCRA fields are not required on Delegated HARP requests.

22 Mortgage Insurance Coverage The percent of Mortgage Insurance coverage requested, expressed as a percent. Two numeric positions (example '06' % or '20' %) Note: Acceptable coverage depends on LTV, State, the type of loan and other factors. Please click Here for the current Arch MI Credit Union rates or Here for Lender Rates. To speak with an Arch MI representative about our rates, you may call Premium Plan Select the Premium Plan to be used from the drop-down list. Options are: EZ MONTHLY - This monthly plan requires no mortgage insurance premium payment at closing. The first premium payment is collected and paid with the first mortgage payment. Single Premium - This plan is a one-time premium payment plan that expands premium financing options and prov ides MI coverage until it is cancelled or terminated. Split Premium Plans - These plans combine a one-time, initial single premium with a lower recurring monthly renewal premium. There are two initial payment options: an up-front option, which can be paid at loan closing, or a financed option, which allows the initial MI premium to be financed into the mortgage loan. Level Annual - This plan is designed to prov ide equal annual premium payments. Because the mortgage insurance premium is paid in adv ance for each year, the premium rates are slightly lower than with monthly plans. Monthly Premium - This monthly plan requires a mortgage insurance premium payment at closing. The default is 'EZ MONTHLY'. Note: For RateStar, the only options are EZ Monthly and Single Premium.

23 Renewal Type A drop-down list indicating the Renewal Type. Options are: Original/Constant Renewal Standard/Amortizing Renewal Single The default is 'Original/Constant Renewal' If Single Premium Payment Plan is selected, 'Single' will be selected as the default Renewal Type. Refund Type A drop-down list describing the refundability of the Payment Plan selected. Options are: No Refund Refund The default is 'No Refund'. Mortgage Insurance Type A drop down list indicating whether the borrower or the lender pays the mortgage insurance premium. Borrower Paid Lender Paid The default is 'Borrower Paid'.

24 Premium Financed A drop-down list indicating whether or not the Mortgage Insurance premium is financed. Options are: 1. NO 2. YES The default is 'NO'. Loan Program Select the Loan Program or Affordable Housing Program from the drop-down list. Options include both standard and customer specific Loan Programs. Some Loan Programs may have special pricing associated with them. Please indicate the Loan Program in order to receive the proper pricing and/or endorsement. Customer Product Code If you have a unique product code to track your loans, simply enter it into this field. This is an optional field and you may only enter a value in the case where you have not indicated an Affordable Loan Program. Twenty Numeric/Alpha Characters Arch Mortgage Insurance Company AC

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