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
  • All loans with Potential Negative Amortization ARM (including Option ARMs)

ALL 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 FICO 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.

Payment Plan

Monthly/Zero Monthly 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 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 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 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.

Split Premium is a split premium payment option that features an upfront premium and a monthly premium.

MI Payment Type

Borrower Paid MI or Lender Paid MI.

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.