Optimal Blue supports lender paid mortgage insurance (LPMI) products, if the investor publishes guidelines and pricing adjustments specific to LPMI. Some investors have specific products based on MI coverage %.
Loan officers can search for products that allow for lender paid mortgage insurance by choosing No from the Borrower Pays MI field on the product search form in Optimal Blue. This field is only applicable on loan scenarios with an LTV greater than 80%. The field is ignored for products that do not require MI.
Note: If the loan officer selects No on loan scenarios with LTV less than 80%, the field resets to Yes, since LPMI only applies to loan scenarios with an LTV greater than 80%.
Note: If the loan officer selects No in an integrated solution, Optimal Blue sends an LPMI flag back to the LOS.
If the investor does not post price adjustments for LPMI, you can build your own custom LPMI adjustments into Optimal Blue. This document describes how to build your own LPMI adjustments.
Qualifying Products for LPMI
The Allowable MI eligibility grid (Manage Products > Select a Product > Eligibility > Allowable MI) shows you the allowable options for the Borrower Pays MI (if required) field when the LTV is less than or equal to 80% and when the LTV is greater than 80%.
The No column indicates that the product is eligible when the Borrower Pays MI (if required) field is set to No (LPMI). The Yes column indicates that the product is eligible when the Borrower Pays MI (if required) field is set to Yes.
Allow LPMI on Generic Products
Overlay the Allowable MI grid. Make sure to check the box in the No column.
- When a user selects No (LPMI) from the Borrower Pays MI (if required) field, the product returns eligible when mortgage insurance is required.
Build Separate LPMI Products
In the Allowable MI grid, check the box in the No column and uncheck the box in the Yes column.
- Make sure LPMI is not allowed for the generic products by unchecking the box in the No column.
Turning Off Optimal Blue Borrower Pays MI Scripted Rule
In order to turn off the Optimal Blue scripted rule “IF Borrower Pays MI (if required) is not Yes, and LTV > 80, THEN Disqualify” scripted rule, add the condition “If FICO < 0”. This ensures that the rule never fires and that the product is always eligible, regardless of the setting of the Borrower Pays MI (if required) field, unless additional rules are applied to that field.
Building Products to Support Various LPMI Options and Adjustments
You can build your own products to support the different LPMI options and adjustments.
Disqualify non-LPMI Loan Scenarios
This is an example of a rule scripted specifically for LPMI products. The purpose of this rule is to disqualify any non-LPMI loan scenarios.
Adjustment Grid Examples
These are examples of LPMI adjustment grids that display pricing adjustments based on LTV and FICO.
This is an example of an LPMI price adjustment scripted with an adjustment rule.
For further instruction on how to build LPMI rules into Optimal Blue, contact your Optimal Blue Account Manager.