Genworth USMI Announces Expanded Underwriting Standard

""Genworth's U.S. Mortgage Insurance"":http://mortgageinsurance.genworth.com/ (USMI) unit unveiled a new set of underwriting guidelines designed to allow lower credit scores and eliminate nearly all geographic restrictions.

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Genworth USMI's ""Simply Underwrite"" guidelines collapse several current sets of underwriting guidelines--based on institution type, origination channel, and other factors--into one expanded national underwriting standard for loans approved by Fannie Mae and Freddie Mac's automated underwriting systems.

""Simply Underwrite provides expanded guidelines that are easy for customers to understand and use, while maintaining prudent underwriting standards that allow us to appropriately manage risk,"" said John Clifford , SVP of commercial operations for Genworth USMI.

The expanded Simply Underwrite guidelines allow FICO credit scores as low as 660 or most borrowers purchasing a home with a 5 percent down payment, giving lenders a greater opportunity to support the recovering market. The guidelines also will remove geographic and property-type restrictions in all markets except for attached housing units in Florida, which will still require Genworth USMI to underwrite to determine insurance eligibility.

According to a release from the company, the simplified guidelines will also allow debt-to-income ratios of up to 45 percent.

While Genworth USMI will closely monitor loan performance under the new guidelines, the company noted that ""loans from customer segments already using similar expanded guidelines have a history of good performance.""

Genworth USMI is one unit of Genworth Financial, based in Virginia.