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Participating Mortgage Insurers

Mortgage insurers are an important part of the short sale process. They protect the investements of both lenders and investors if a borrower defaults on a mortgage loan. Some mortgage insurers have taken steps to assit lenders in speeding up the HAFA short sale process.

MGIC

• MGIC, the largest private mortgage insurer in the United States, announced on April 8 Delegated Guidelines for Short Sales, working in conjunction with HAFA.1

Genworth Financial

• Genworth Mortgage Insurance Corporation has announced its participation in the HAFA program and posted guidelines for Genworth-insured HAFA loans as follows:
  • Borrower Criteria
    • 3 Payments Due (> 60 days delinquent); and
    • Liquid Reserves < $25K; and
    • Gross Annual Income < $80,000; and
    • A FICO Score of < 680.
  • Short Sale Pre-Approval Criteria
    • The net proceeds on the sale of the property are ≥82% of "as is" value or the loss on the sale of thproperty is > the full MI claim amount; and
    • The MI Loss is < $75,000; and
    • The "Repaired Value" of the property is no more than 5% greater than the "As Is Value" (up to a maximum difference of $10,000).2

Last Updated: 28 May 2010

Sources:

1. MGIC. "Default Servicing #03-2010" (2010): http://www.mgic.com/pdfs/Short_Sale_03-2010_FINAL.pdf
2. Genworth Financial. "Genworth Announces Participation in Treasury’s Home Affordable Foreclosure Alternatives Program" (2010): https://miservicing.genworth.com/pdfu/HAFA.Revised.pdf