What amount of MI coverage is required on DU Refi Plus loan casefiles with an LTV greater than 80 percent?
If the original LTV on the existing Fannie Mae loan is less than or equal to 80 percent, lenders are not required to obtain MI. If the original LTV on the existing Fannie Mae loan was greater than 80 percent, and the existing loan currently has MI, the lender may either obtain the amount of MI coverage in effect on the existing Fannie Mae loan, or standard MI coverage. When determining the amount of MI coverage to obtain, the lender is encouraged to use its best efforts to obtain the MI coverage that provides the lowest-cost option available to the borrower. If the original LTV on the existing Fannie Mae loan was greater than 80 percent, and the existing loan does not currently have MI (for example, if MI was canceled or terminated), lenders are not required to obtain MI. NOTE: Loan casefiles with an LTV of 80 percent or less do not require MI. Q71.
Related Questions
- Why does DU require the lender to confirm that the MI coverage that is in effect on the existing loan is accurate, as shown on the DU Underwriting Findings?
- Are the DU Refi Plus underwriting flexibilities only offered on loan casefiles with an LTV less than or equal to 80 percent?
- Does DU require the same asset documentation for DU Refi Plus loan casefiles as for other DU loans?
