Mortgage requirements tighten significantly

Genworth now considers entire states "distressed markets" and is demanding credit scores of 720 or better for any mortgage:

Underwriting Guideline Changes – Effective February 2, 2009
• Minimum Credit
Score = 680
• Maximum Debt to Income (DTI) = 41% regardless of AUS or
Submission Channel
• High Cost Loans (> $417,000) Minimum Credit Score = 740

o Loan amounts > $417,000 in CA – Ineligible

• Cash Out Refinance – Ineligible
• Second Homes – Ineligible
• Manufactured Homes – Ineligible
• Construction to Permanent – Ineligible

Declining/Distressed Markets Changes – Effective February 2,
2009
• Minimum Credit Score = 700

o AZ, CA, FL, NV = 720 (as per existing guidelines)

• Maximum Debt-to-Income = 41% regardless of AUS or submission
channel
• Additions to our Declining/Distressed Markets List

o 17 states added in their entirety
o 69 MSA/CBSA added
o Please see Attachment A for a complete list of new markets

The distressed markets list has now been expanded to include the entire states of: Arizona, California, Connecticut, Delaware, Florida, Michigan, Nevada, and New Jersey, Colorado, Maine, New Hampshire, Rhode Island, Wisconsin, Hawaii, Maryland, New Mexico, Utah, Idaho, Massachusetts, Ohio, Vermont, Kansas, Minnesota, Oregon, Washington.

Thanks to CalculatedRisk for catching this.