debt-to-income

  • Does Arch MI have overlays restricting approval for loans with Debt-to-Income (DTI) ratios above 45 percent when the transaction is approved by DU/LPA?

    - by Darren Metsker

    Does Arch MI have overlays restricting approval for loans with Debt-to-Income (DTI) ratios above 45 percent when the transaction is approved by DU/LPA?

    Arch MI RateStar® is our proprietary and dynamic risk-based MI pricing solution that takes into account multiple rating variables beyond those used by rate cards, including DTI. This allows us to manage risk and maintain flexible underwriting guidelines that align with our clients’ mortgage originations. We have not made any changes to our underwriting guidelines at this time and will continue to monitor our portfolio and the secondary markets’ appetite for this business.