The HENN Blog: Higher Education Now for Mortgage & Real Estate News

MGIC Underwriting Changes for Mortgage Insurance

Effective Nov. 1, 2011

The minimum credit score for a rate/term refinance with a maximum LTV of 95% and a maximum loan amount of $417,000 will be lowered to 660. The maximum LTV for a purchase or rate/term refinance with a minimum credit score of 700 and a maximum loan amount of $625,500 will be raised to 95%.

 Many have always assumed that once a collection was taken to court and the creditor received a judgement, that there was no longer any room for negotiation. A co-worker recently shared a success story with us in regards to this subject.

" In less than 30 minutes, start to finish, a local law firm representing a huge national credit card company agreed to 53 cents on the dollar, immediate release of the lien so their sale could be completed tomorrow, and a very reasonable 6 month payment plan for the balance remaining after taking the cash available from the closing table.

If we had not been able to accomplish this, it would have been yet another foreclosure statistic, and 100% of the lien would have still remained on the clients' primary residence.

Everybody's happy. If you have such a situation, I'd be glad to share what I learned that made this happen. Love learning new stuff, especially if it turns out well! "

Thanks Carol for sharing this information. If you know of someone that may have a judgement on their credit report let them know it's never too late.

Loan Program Highlight  

This program is great for Jumbo Loans.

• Offer aggressive 7/1 and 5/1 ARMs to $3,000,000
• No penalties for FICO Scored
• No price hits for Loan-To-Vaue or Condos
• No Escrows on every loan
• Max LTV for Loan amounts up to $850,000 is 70% 
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