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What MI coverage levels are required by Fannie Mae and Freddie Mac?
-What MI coverage levels are required by Fannie Mae and Freddie Mac?
To ensure that your loan meets investor guidelines, we recommend checking with your investor for specific requirements. Standard coverage levels for Fannie Mae are located in their Seller Guide B7-1-02: Mortgage Insurance Coverage Requirements (09/29/2015). For Freddie Mac, refer to section 4701.1: Mortgage insurance (04/24/17). A handy flyer showing standard coverages is also available on our Loan Originator website, at https://lo.archmi.com/mi-requirements/.
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My findings call for two different MI coverage options. Which one should I choose?
-My findings call for two different MI coverage options. Which one should I choose?
DU or LPA may offer two levels of acceptable Mortgage Insurance Coverage on the AUS findings. The lesser amount is referred to as ‘Reduced’ coverage and is associated with a Loan Level Price Adjustment. We will gladly apply this reduced coverage to your loan at your request, but strongly urge you to consult with your Secondary Marketing group to confirm the associated cost and to confirm your Investor (if applicable) will purchase loans with the reduced coverage.
