• Matt Joy

MI companies aren’t in love with 50% DTI; Atlanta or Virginia for Amazon HQ2?


Private mortgage insurers MGIC and Genworth have announced that any mortgage insurance application received on or after 3/1 for MGIC & 3/19 for Genworth, would need a 700-credit score or higher for loans with a DTI (debt-to-income ratio) exceeding 45%. Considering that Fannie Mae recently changed their DTI ratio to 50%... this is an interesting move by the private mortgage insurers. The report doesn’t comment on any other companies changing their policies, but I wonder if/how many will follow suit. There is mounting concern over the increased number of loans that have been submitted to the insurers with DTI ratios exceeding 45%... combine that with weaker than normal credit profiles... a little wand waive and an abracadabra… POOF! MGIC tightens up their requirements (some in the industry refer to MGIC as “magic”, hence the reference. Cut me a break… it’s Monday). It’ll be interesting to see how much business MGIC and Genworth are willing to lose (if any) to protect themselves against possible losses.

Amazon HQ2 in the “Dirty, Dirty”? Maybe. According to certain “experts” (you know I can’t stand that word) Amazon’s HQ2 could be set up in the ATL or Northern Virginia. Atlanta’s appeal comes primarily from its housing affordability and current urban revitalization that has attracted more and more young talent to the Big Peach. As for Northern Virginia… the appeal is its proximity to a highly educated work force and policymakers in our nations capital. I’m sure lobbyists are licking their chops for the opportunity to work for Team Bezo’s. It’s been reported that whichever city, or region for that matter (Northern Virginia is not a city) who gets the bid for HQ2 will see an estimated 50,000 jobs created as well as billions invested into the area’s infrastructure. I’m not good at math, but that’s a lot of people who will need homes to live in…

It’s the first full week of the month and the last month of the Q1… it’s crazy how fast that sneaks up on ya! I hope everyone is having a good Q1 and wish you the best as we enter into the first full week of March!

MJ

Photo by Ian Schneider on Unsplash

The opinions expressed in this post are the sole view of the writer and do not reflect the opinion of Princeton Mortgage Corporation.

#MortgageInsurance #MGIC #Genworth #DTIRatio #Atlanta #Amazon

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