The industry's largest mortgage insurer is offering lenders a gateway to the automated underwriting systems of Fannie Mae and Freddie Mac.
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Mortgage Guaranty Insurance Corp. took on Fannie Mae's system following a recent pilot program, and is now adding Freddie Mac's automated underwriter.
MGIC will offer access to the systems to help lenders shave underwriting costs for high loan-to-value loans that require mortgage insurance, said Dennis Waller, a MGIC vice president for underwriting services.
Contifinancial TakesStake in Utah Lender
Contifinancial Corp. has closed on its deal to acquire part of a fast- growing subprime lender in Utah.
Contifinancial, a New York-based lender with national aspirations, purchased for $500,000 a 12% interest in CMG Funding Corp., Salt Lake City.
Contifinancial also extended to the company $850,000 for subordinated debt that is convertible into 18% of CMG's common stock.
CMG operates primarily in the West, with combined retail and wholesale originations of $30 million a month, a Contifinancial spokesman said.
