2014-10

REMN Wholesale is pleased to announce we are lifting the suspension of borrower paid single premium and split premium mortgage insurance effective immediately.  REMN Wholesale suspended these MI options in January due to the new QM 3% points and fees test requirements.

REMN Wholesale will now offer both refundable and non-refundable borrower paid single premium and split premium mortgage insurance subject to the requirements below.

Non-Refundable Single Premium

If a non-refundable borrower paid single premium plan is selected the entire premium must be included in the 3% points and fees test.

Refundable Single Premium

If a refundable borrower paid single premium plan is selected the following applies:

• The amount of the premium > 1.75% is included in the 3% points and fees test.

Example:

• Loan amount is $100,000
• MI premium is 2.55%
• $100,000 x 2.55% = $2,550.00 (total amount of premium)
• $100,000 x 1.75% = $1,750.00
• $2,550 –  $1,750 =  $800.00

The dollar amount of the premium greater than 1.75% is $800.00 so $800.00 is the amount entered for the 3% points and fees test.

Split Premium

The full amount of the upfront premium is included in the 3% points and fees test.

Loans with borrower paid single premium/split premium MI must pass the QM 3% points and fees test.

MI Company Eligibility for Single Premium and Split Premium

REMN Wholesale accepts mortgage insurance from specific MI companies.  The chart below identifies borrower paid single premium and split premium mortgage insurance eligibility.

As a reminder, REMN Wholesale allows the financing of both borrower paid single premium and the upfront premium of split premium MI.

The Agency Conforming and High Balance guidelines will be updated with this information in the near future.

If you have any questions, please contact your Account Executive.