We will discontinue this for now - 6/1/2020-MP
I want to leave the page for now but see the Delegated Underwriting Guidelines for our process flow and loan eligibility guidelines.
https://www.rdhloans.com/intranet/delegated-underwriting/ (click here)
Contract Underwriting with National MI
Sales Support: Contacts: Chris McCrary | Cell: 214-274-4411 | [email protected] |
Chris lives in Argyle and is the local AE for National MI
- Underwriting Operations Support: Solution Center Contact Information
- [email protected]
- Phone: 855.317.4664 (5am - 5pm PST M-F)
- National MI's Underwriting System: blitzdocs.net (click here)
- Here is the Quick Reference Guide for BlitzDocs (click here)
- Please feel free to contact our National MI Solution Center with any additional questions. Our dedicated team is here to assist you with general policy guidelines, servicing, online technical support and training.
- Solution Center Contact Information:
- Email: [email protected] | Phone: 855.317.4NMI (4664) Hours of operation: Monday-Friday, 5am to 5pm PST
- Kaylea Bosman | Director, Contract Underwriting | National Mortgage Insurance Corporation | 2100 Powell Street, 12th Floor, Emeryville, CA 94608
- 510.858.0382 (o) | www.nationalmi.com | Solution Center: [email protected] | 855.317.4664
What Does This Mean: Contract underwriting is a service provided by all Mortgage Insurance Companies. National MI provides this service at a cost to Red Diamond that will be outlined later. The underwriting provided by National MI will replace the underwriting done by our investor if we have delegated authority with that investor.
Delegated Underwriting: Red Diamond is getting set up as a delegated seller with Wells Fargo. With that approval we will be able to sell loans underwritten by National MI to Wells Fargo. We're hoping the service levels and turn times make this a worthwhile process.
Contract Underwriting Loan Parameters - Minimum Standards
Discontinued as of 6/1/2020: See delegated guidelines. - https://www.rdhloans.com/intranet/delegated-underwriting/ (click here)
Loan Parameters for Contract Underwriting with National MI:
- Conventional Only-All Loans Must Meet Wells Fargo Guidelines (Wells is the only investor for these loans.)
- Only loans requiring mortgage insurance (95.01% LTV - 97% LTV)
- National MI Issues the MI Cert. (the underwriter issues the cert with the approval.)
- Minimum credit score must be 680
- Maximum Loan To Value will be 95% (No 97's)
- Maximum debt to income ratio must be 43%
- No Home Ready or Home Possible loans
- Full 2 Years of W-2 Employment
- No Self-Employed
- No Loans in a Trust
- Single Family 1 Unit Only
- No Condo's
- Two Property Max, no more than 1 other REO plus primary residence
- Exceptions available with compensating factors
- Minimum loan amount $200,000
- DU Approved Eligible Only
- LP Approved
- Sending in high quality loans will reduce our fallout and our underwriting expense. We will be billed for any loan they underwrite regardless of it closing.
- National MI will underwrite to the Wells Fargo overlay guidelines.
- If we add another delegated investor they will underwrite specifically to the investor that we are committing the loan to so that all investor overlays are taken into consideration when the file is underwritten.
Contract Underwriting Costs & Submission Requirements
Purchase Submission Requirements: All loans submitted to National MI must have the contract fully executed, the inspection complete and all issues resolved and the appraisal ordered before submission to National MI. National MI will charge Red Diamond the underwriting fee on all loans regardless of the loan closing. Having a file where the borrower is fully committed will reduce our fallout with National MI.
Refinance Submission Requirements: For refinance loans that are submitted we need DU or LP Approval, must meet the loan parameters listed above and the Title and Appraisal must be ordered prior to submission.
Underwriting Costs: Loans with Mortgage Insurance: $125 | Loans without Mortgage Insurance: $425 | This charge will be billed to Red Diamond regardless of closing the loan so we need to be sure the loan will close, the appraisal and Title has been ordered, the contract has been fully executed and the inspection is complete.
Risks Of Contract Underwriting
With a Non-Delegated Sale the underwriting risk is transferred to the Investor & Underwriter for the file.
On a delegated sale Red Diamond retains the underwriting risk and manages that in cooperation with National MI.
National MI Contract Underwriting Agreement: Click Here
- This document will provide the Definitions;
- Loan Review Services Overview;
- Procedures For Review;
- Fees;
- Duties, Representations and Warranties of Red Diamond;
- Termination Parameters;
- Limitation of Liability;
- Remedy Request;
- Remedies;
- Repurchase;
- Indemnification;
Contract Underwriting is not without risk. We need to ensure a high quality loan is delivered for underwriting to mitigate the risks to Red Diamond.
