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Is a Lender Credit considered an Interested Party Contribution (IPC)?
-Is a Lender Credit considered an Interested Party Contribution (IPC)?
Arch MI does not consider a Lender Credit an Interested Party Contribution (IPC) and it would not be subject to those limits unless the Lender is also the property seller.
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Will Arch require a foreign credit report when a loan with valid DU Approve/Eligible findings (or LPA Accept/Eligible feedback) includes a borrower who has been in the US for less than two years?
-Will Arch MI require an international credit report when a loan with valid Desktop Underwriter® (DU®) Approve/Eligible or Loan Product Advisor® (LPASM) Accept/Eligible findings includes a borrower who has been in the United States for less than two years?
Loans with valid DU Approve/Eligible or LPA Accept/Eligible findings are perfect for our EZ DecisioningSM program. Under our EZ Decisioning program, no additional credit or tradeline requirements apply. For more information, visit our Guidelines page.
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Is a borrower on a loan with valid DU/LPA approved findings or feedback eligible for mortgage insurance even if they have limited credit?
-Is a borrower on a loan with valid Desktop Underwriter® (DU®)/Loan Product Advisor® (LPASM) approved findings eligible for mortgage insurance even if they have limited credit?
Yes. Loans with valid DU Approve/Eligible or LPA Accept/Eligible findings are perfect for our EZ DecisioningSM program. Under our EZ Decisioning program, no additional credit or tradeline requirements apply. For more information, visit our Guidelines page.
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Does Arch MI accept borrowers who have “frozen” their credit?
-Does Arch MI accept borrowers who have “frozen” their credit?
Yes. Arch MI follows Agency guidelines with regard to underwriting loans for borrowers with frozen credit. If the borrower’s credit information is frozen at one of the credit repositories, the credit report is still acceptable as long as credit data is available from two repositories, a credit score is obtained from at least one of those two repositories and the lender requested a merged in-file report from three credit repositories. In the event no credit score is available from either of the two “unfrozen” credit repositories, Arch MI’s non-traditional credit guidelines may be used for consideration of mortgage insurance eligibility.
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Does Arch MI insure loans where no borrower on the loan has a credit score?
-Does Arch MI insure loans where no borrower on the loan has a credit score?
Non-traditional credit (a loan for which no borrower has a credit score) is allowed for Arch MI’s EZ DecisoningSM program with a DU® Approve/Eligible or LPA Accept/Eligible recommendation when the loan meets all Fannie Mae DU or Freddie Mac LPA requirements. It is also allowed under Arch MI’s Standard Underwriting Requirements when the requirements in Section 3.12.02.01 of the Arch MI Underwriting Manual are met. The loan must be submitted non-delegated.
Note: Borrowers with non-traditional credit are ineligible when the lender submitting the MI application is located in the state of Washington.
