RATE FINDER FIELD DEFINITIONS

Loan Type

Fixed (for the first five years or more): This loan type features level payments for the first five years of the loan term, have no temporary buydowns, rate concessions, or the potential for negative amortization during the first five years.

Examples:
  • Fixed rate/fixed payment
  • 5yr ARMs, 7yr ARMs, 10yr ARMs
  • 5yr or greater balloons
  • 2% graduated payment mortgages whose annual payment increases are limited to 2%.

1% Capped ARMs & No Neg Am: This loan type features payment changes, or the potential for payment changes, and have effective annual interest rate caps of 1% during the first three years of the mortgage.

Examples:
  • 3yr ARMs with 3% cap or less on the first adjustment
  • 2 yr ARMs with 3% cap or less on the first adjustment
  • 1 yr and 6 month ARMs with 1% or less effective annual interest rate caps
  • Blended ARM/fixed instruments
  • Buydowns

ARMs with caps > 1% & No Neg Am: This loan type features payment changes, or the potential for payment changes, and have effective annual interest rate caps greater than 1% during the first three years of the mortgage.

Examples:
  • 3yr ARMs with greater than 3% cap on the first adjustment
  • 2 yr ARMs with greater than 3% cap or less on the first adjustment
  • 1 yr and 6 month ARMs with greater than 1% or less effective annual interest rate caps

Neg Am ARMs: This loan type features payment changes, or the potential for payment changes and features potential negative amortization during the first five years. Genworth Mortgage Insurance does not insure scheduled negative amortization loans.

Examples:
  • Option ARMs
  • Any Other ARM with the potential negative amortization during the first 5 years.

Representative Credit Score


Representative Credit Score Selection
If... Then...
Three (3) credit scores are obtained for one borrower Use the middle score
Three credit scores are obtained for one borrower and two are identical Use the identical score
Two (2) scores are obtained for one borrower Use the lower score
Multiple borrowers have three credit scores each 1. Choose the middle score for each borrower, then
2. Choose the lowest of all the middle scores
Multiple borrowers have two credit scores each 1. Choose the lower score for each borrower, then
2. Choose the lower of all the scores
One borrower with credit scores, one borrower without credit scores 1. Choose and use the score as described above for the borrower with the credit scores
2. Do not use a zero as the representative score

Example:
FICO Scores
Borrower 700 690 710
Co-Borrower 680 675 690

In this example, the representative FICO score would be 680, as it is the lower of the two middle scores.

Nontraditional Credit

Nontraditional credit is used to document a borrower's credit history when the borrower does not have the type or number of credit references needed for a traditional credit report.

DTI – Debt to Income

Total monthly obligations to income ratio calculated according to standard Fannie Mae or Freddie Mac guidelines.

MI Product

Monthly/Zero Monthly Premium MI – Refundable is a payment option that features a coverage term of one month; premiums are remitted monthly. Zero Monthly Refundable is a payment option which features monthly premium rates with no initial premium required at closing.

Monthly/Zero Monthly Premium MI – Non-Refundable rates feature a lower premium in lieu of a premium refund when coverage is cancelled. No premium will be refunded when coverage is cancelled, unless cancelled under the Homeowners Protection Act of 1998.

Level Annual Premium MI – Refundable is a payment option that features a coverage term of twelve months; premiums are remitted annually. The Level Annual option features one identical rate for both first year and renewal premiums.

Single Premium MI – Refundable provides refunds according to the refund schedule in the event of cancellation. If, at any time, a refund is required under the Homeowners Protection Act of 1998, a refund of unearned premium will be provided.

Single Premium MI – Non-Refundable features a lower premium in lieu of a premium refund when coverage is cancelled. No premium will be refunded when coverage is cancelled, unless cancelled under the Homeowners Protection Act of 1998.

Split Premium MI is a payment option that features a lower monthly rates combined with an upfront premium due at closing. There are three different premium options for split premium MI based upon the required upfront premium amount (Plan 1 = 0.75%, Plan 2 = 1.25% and Plan 3 = 1.75%).

Coverage


* Agency Standard MI Coverage Requirements
LTV Loan Terms >=25 years Loan Terms <=20 years
Over 95% Requirements differ by program Requirements differ by program
90.01 – 95% 30% 25%
85.01 – 90% 25% 12%
80.01 – 85% 12% 6%

* Please Note: The Agency coverage requirements listed above are not intended to represent the coverage requirements of all agency loan products and programs, especially since coverage requirements may differ for loans processed through an agency automated underwriting system. Also, agency coverage requirements change from time to time such that the most accurate sources for agency coverage requirements are the Fannie Mae Selling or Freddie Mac Seller Guides. Please consult these guides for the most up to date requirements.

Renewal

Zero Monthly, Monthly and Level Annual:

For Level (Constant):
  • The renewal premium rate is applied to the original loan balance for years 1 through 10
  • For years 11 through term, the rate becomes 0.20% or remains the same if the original rate is less than 0.20%
  • Premium adjustments do not apply to the 11th year rate

For Amortized (Declining):
  • The renewal premium rate is applied annually to the outstanding loan balance as of the anniversary date of the loan for years 1 through term.

Affordable Housing


Qualifications for Affordable Housing:
  • Maximum of 100% Area Median Income (AMI) as defined by HUD, unless the property is located in a high cost area where a higher AMI is permitted. The income limit may be exceeded if the property is located in an "underserved area" as determined by HUD
  • First time homebuyer, as defined by Agency Standard Guidelines
  • Pre-Purchase Homebuyer Education is required

Counseling Saver


The Counseling Saver program is open to all loans that meet Genworth's guidelines and the following:
  • Classroom or face-to-face pre-purchase homebuyer education requirement consisting of a minimum of (8) hours
  • Education provider must be a nonprofit organization approved by Genworth

Loans must meet all Genworth's guidelines with the following limitations:
  • Primary Residence
  • Purchase / Rate/Term Refinance
  • Fixed Rate and ARMs

A certificate of completion or other documentation of classroom or face-to-face counseling by an approved non-profit organization must be present in the loan file and available upon request.

Third Party Origination

A Third Party Origination is a loan for which the loan origination (taking the loan application) or processing functions are performed by an entity other than the entity closing and funding1 the loan. A Mortgage Service Provider (MSP) may be used to perform all of these functions except the loan origination (taking the loan application), so long as the MSP is paid on a fee basis for services performed, with payment of fees not being contingent on mortgage approval or closing.

1 Loans must be funded from a warehouse line in the lender's name or using the lender's own funds. "Table-Funded" loans are considered Third Party Originated loans.


For fields not listed please refer to our underwriting guidelines for details and eligibility.