United Guaranty (UGI) has decided to increase its participation in the newly revised Home Affordable Refinancing Program (HARP), issuing new guidance to servicers of Fannie Mae and Freddie Mac loans.
Senior vice president Brian Gould told ASR sister publlication National Mortgage News that UGI has waived representations and warranties on a majority of its insured HARP-eligible loans.
The Greensboro, N.C.-based company also is providing servicers with a list of loans where rep and warranty rights have been waived.
In a recent notice published on its Web site, the MI spells out a process for "new" servicers (who don't own GSE servicing) to submit a loan file for a HARP refinancing.
UGI said it will secure a copy of the original loan file and review it for material defects before it relieves the original servicer of any responsibility for the loan.
Once UGI determines there were no material defects on the original loan it then will underwrite the new transaction to ensure the mortgage meets the new GSE HARP terms.
The mortgage insurance subsidy of American International Group is not imposing any new fees or raising premiums, the senior vice president for loss management noted.
However, the processing of HARP refinancings with mortgage insurance policies will be "easier," Gould said, for the "same" servicer that already controls the servicing as opposed to a new servicer.
