June 4, 2020
Loan Officer, Industry NewsWhat the New COVID-19 GSE Guidelines Mean for You
As we navigate the impact that COVID-19 has had on our industry, Radian remains dedicated to providing the tools and resources you need to serve borrowers. We have updated our mortgage insurance (MI), title insurance, and real estate services processes to align with COVID-19 GSE announcements and temporary guidelines, and we broadly support borrowers through this hardship through our policies. Here’s a closer look at the changes.
We have implemented temporary flexibilities related to loan origination and closings to support the health and wellbeing of employees, borrowers, and their families. These measures ensure compliance with government safety guidelines and satisfy GSE underwriting documentation requirements.
- Alternatives to traditional property appraisals and interior inspections like exterior-only and desktop appraisals
- Alternatives to verbal verification of employment (VVOE) such as leveraging a year-to-date paystub evidencing a recent payroll deposit
- Powers of attorney flexibilities
- Remote online notarization flexibilities
Many borrowers’ employment and income are being impacted by the economic shutdown, and we strongly encourage lenders to apply thoughtful due diligence for new loan applications.
- Ensure employment, income, and asset verification documentation is dated no more than sixty (60) days from the Note Date.
- If possible, require more recent income documentation and validate employment as close to the loan closing as possible.
- Watch for income and employment documentation that shows that the borrower is furloughed or there is a curtailment in income.
- Confirm that a self-employed borrower’s business is currently operating such as obtaining executed contracts or signed invoices that indicate the business is operating on the day the lender verifies self-employment or current receipts for services performed within 10 days of the Note Date.
- Follow GSE down-payment requirements to liquidate the equity-based asset or discount the value if used for reserves.
- Remember that unemployment benefits can only be used as qualifying income if associated with seasonal employment and that the income of a furloughed borrower is not eligible under the temporary leave income policy.
Don’t forget: Servicers must continue monthly Default and Loss Mitigation reporting to Radian, including loans that miss payments under a COVID-19 related workout.
Use Default Reason Code 12 for all defaults caused by COVID-19-related hardships.
Use the Loss Mitigation Workout codes below for loans in a forbearance plan due to a COVID-19-related hardship.
Radian is here to help as you assist new and existing borrowers during these unprecedented times. For more information, which will be updated as needed, please visit www.radian.com/covid-19 or contact your Radian Account Manager.
The American Dream of Homeownership Starts with Financial Literacy
As we celebrate National Financial Literacy month this April, it’s a reminder of the important role that financial literacy plays in preparing for the homebuying journey. Learn more about financial literacy for homebuyers.
Preparing to Buy or Sell a Home in the Spring
Spring is the busiest season in real estate, with warmer weather and blooming flowers highlighting a property's best features, and buyers prioritizing home tours before family obligations. Take a look at our checklists to help buyers and sellers prepare for the upcoming busy market.
4 Simple Steps for Loan Officers to Build Lasting Relationships in 2024
Using these 4 Simple Steps, Loan Officers can help their elevate business and redefine success in 2024 by building strong relationships with real estate agents, prior clients, local community organizations, and other trusted service providers.
The Millennial and Gen Z Homebuyer
Recognizing and understanding behaviors of Millennial and Gen Z homebuyers can empower loan officers and real estate agents to engage these distinct generations of homebuyers.
Radian Launched Affordable Housing Crisis White Paper
Learn more about how increasing mortgage rates, skyrocketing home costs, and a lack of supply in the market have left many wondering if they will ever be able to afford a home.
The Untapped Potential of Home Equity Lending
New trends are emerging that lenders should be aware of, including the return of home equity loans and HELOCs. Here are just three of the reasons why now is the time to take advantage of this market.
Understanding the Next Generation of Homebuyers - The ABCs of Gen Y and Z
There is a new generation of homebuyers emerging in the market. What should loan officers and mortgage brokers know about this next generation of homebuyers?
Are you ready for the Great Rebound in Self-Employed Borrowers?
Are you ready for the Great Rebound in self-employed borrowers? In this infographic you will learn more on what's behind the great rebound in self-employment and more. Check out this infographic that provides statistics on the big resignation, the growth in remote working and the grow in gig work.
Woman of Influence: Emily Riley
Emily Riley shares insights on what it means to be a woman leader in the housing industry.
Bidding Wars, Cash Offers, Record High Prices: What You Need to Know
With bidding wars, cash offers, and record high prices, find out what you need to know about appraisal contingencies in today’s housing market.