MI Analysis
by Craig Johnson, Wholesale Account Executive SunTrust Mortgage

Now by the time this is published it could or most likely will change...This is as of 3/21/08. In today’s market, we are constantly seeing changes to product guidelines. Behind many of these changes are the restrictions put in place by the MI Companies. Keeping up with these changes is becoming more and more difficult. Below, you will find a quick breakdown of what the MI Companies will and will not allow. Please keep in mind that our Shortcut is not considered a program, but rather a feature. This distinction allows us to still offer the Shortcut in declining markets. As always, these guidelines are subject to change at any time.

Competitive Analysis of Mortgage Insurance Guidelines

• Max LTV by all MI companies is 97% with most of them requiring a 680 credit score for purchase and NCO refinances.
• LTV's 95% or less (MI companies are all implementing a minimum score of 620)
• Non Traditional credit is limited to max 95% LTV
• Genworth won’t insure 2nd homes in Florida.
• All MI companies will insure investment to 90% but only MGIC and Triad will insure investment with scores below 660 down to 620.
• All MI companies will insure cash out to 90% but only Radian will insure below 680 down to 660.
• All the MI companies limit interest only to 97 or 95% UG and Radian won’t insure 3-4 family interest only, but who cares since we won’t do a 3-4 family agency over 80% TV.
• All of them use the lowest middle score for determining credit score.
• We can still offer SIVA and SISA in Non declining markets.
• Declining Market is much tougher:
  • Max LTV 95% and if it’s a Condo the Max LTV drops to 90%
  • Reduce Doc is ineligible
  • Cash out is Ineligible
  • Investment is Ineligible
  • Condo’s over 90% is ineligible
  • 2 unit over 90% works for every MI company excluding UG
  • Interest only is only ineligible with Genworth and Triad and the others have no additional restrictions excluding UG who is at 90%.
  • Minimum FICO over 90% is 680 in a declining market for Genworth, MGIC, and UG. No other additional restrictions from Radian, PMI, or Triad.
  • No other additional credit overlays from any other MI company excluding UG who requires 5% contribution from their own funds in a declining market, so they won’t offer the flex 97 reduced to 95% on a single family

SunTrust Mortgage
phone: 937-260-7117 fax: 513-672-0056
email: craig.johnson@suntrust.com