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?
The MI coverage level provided on the DU Underwriting Findings Report is based on the information available to Fannie Mae at the time of the DU Refi Plus transaction for the existing loan. To ensure that the borrower is receiving the benefit of the MI flexibilities based on the borrower’s current situation, the lender must confirm that the amount of MI coverage provided on the DU Underwriting Findings Report is, in fact, the coverage level currently in effect on the existing loan. Q83. When the lender confirms the accuracy of the MI coverage and determines that the amount of existing coverage provided on the DU Underwriting Findings Report is inaccurate, what MI coverage should the lender obtain on the new DU Refi Plus transaction? The lender may obtain the amount of MI coverage in effect on the existing loan, as confirmed by the MI provider, or standard MI. The lender is encouraged to use its best efforts to obtain the MI coverage that provides the lowest-cost option available to the
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