mgic default servicing guide

7/30/2019 MGIC Default Servicing Guide

1/49

MGICs

Default Servicing Guide

DEC

2012

MGIC


2/49

MGIC

MGICs Default Servicing Guide December 2012

Summary of Changes

MGIC has made changes within the following Sections of the Default Servicing Guide. Please review theinformation listed below to learn more.

Section Changes

Sections 1-7 Movedsupportcontactinformationtothebottomofeachpage

Section 2

Loss Mitigation

Workouts

Moveddocumentationrequirementsforthefollowingtosection5.04:

Borroweradherencewithregardtoforbearance(2.02)andrepaymentplans(2.03)

Shortsales(2.06)ordeedinlieuworkouts(2.07)thatresultinaclaim

ReplacedHAMPinformation(2.04)withalinktoourwebsitefordetailsonthisandotherUSTreasury-andGSE-sponsoredprograms

Section 5

Claim for Loss

Reorganizedcontentofentiresection

EliminatedreferencestotheoldFileaClaimpagesinMGIC/Link

Addedalistofnonclaimableitems(5.03)

Listedallclaimdocumentationrequirementsinsection5.04

Clariedclaim-lingprocess(5.05)

Addedaresourceforcheckingclaimstatus(5.06)


3/49

MGICs Deault Servicing Guide

Introduction

page 1

Introduction

MGIC Reservation o Rights MGIC retains a ull and complete reservation o rights. Neither this document nor any

action taken by MGIC that mayappear inconsistent with this document should beconstrued as a waiver by MGIC o any rights or deenses it may have.

MGIC Master Policy MGICs Master Policy is reerred to on several occasions within this guide. To view

a copy o the Master Policy, see Master Policyholder resources at www.mgic.com/

lender-services/index.html .

MGIC Delegated Servicing

Authority

As a servicer, you are bound by the requirements under MGICs Master Policy to

mitigate MGICs loss and report certain loss mitigation measures to MGIC.

To acilitate your loss mitigation eorts, MGIC oers Delegated Servicing Authority

to help streamline your deault servicing processes. You can use this authority toapprove or complete without our prior approval loss mitigation workouts

(Section 2) that meet our Guidelines or Delegated Authority (reerred to throughout

this guide as Delegated Guidelines).

These guidelines may supersede any special delegation authority previously oered.

We reserve the right to revoke any delegation.

Delegated Guidelines apply to loans with primary coverage and/or

supplemental coverage (pool or second-layer coverage).

Use o the Term Borrowers Throughout this guide, borrowers reers to multiple borrowers or a single borrower.

Reerences Throughout the guide, you will be reerred to supporting inormation in other sectionswithin the document. For example, (2.06) means you will ind related inormation in

Section 2, subsection 6. These reerences are hyperlinked to the appropriate page in

the guide.

The guide also includes external reerences, linked to pages on our website,

www.mgic.com.

Special Notes Inormation to note will be pointed out to you with this symbol, Nte .

MGIC/Link Servicing In cases where you need to report or submit inormation to MGIC, our secure, online

servicing tool, MGIC/Link (7.01), is usually the best option. You can complete most o

your deault servicing tasks on MGIC/Link, including reporting, requesting approvals

and uploading documentation.

I youre not already an MGIC/Link user, go to www.mgic.com/signup to register or

a password.

Support I you have any questions about inormation presented in this guide, contact MGIC

Customer Service, [email protected] or 1-800-424-6442.
http://www.mgic.com/lender-services/index.htmlhttp://www.mgic.com/lender-services/index.htmlhttp://www.mgic.com/signupmailto:[email protected]:[email protected]://www.mgic.com/signuphttp://www.mgic.com/lender-services/index.htmlhttp://www.mgic.com/lender-services/index.html


4/49


Introduction

page 2


5/49


Table o Contents

page 3

Table o Contents

1 Reporting

1.01 Reporting Requirements..........................................................................page 5

1.02 Reporting Deaults............................................................................................6

1.03 Updating Deault Status.................................................................................... 6

2 Loss Mitigation Workouts

2.01 Foreclosure Sale Postponement.......................................................................9

2.02 Forbearance...................................................................................................10

2.03 Repayment ..................................................................................................... 11

2.04 Special US Treasury, GSE Programs.............................................................. 12

2.05 Loan Modifcation ........................................................................................... 12

2.06 Short Sale.......................................................................................................14

2.07 Deed in Lieu o Foreclosure ............................................................................18

3 Foreclosure3.01 Foreclosure Commencement.........................................................................21

3.02 State Time Frame Guidelines or Loans with Primary Coverage...............22

3.03 Bankruptcy .....................................................................................................23

3.04 Foreclosure Bidding Instructions....................................................................24

3.05 Defciency Judgments .................................................................................... 26

4 Real Estate Owned (REO)

4.01 REO Property Disposition or Primary Coverage .......................................27

4.02 REO Property Disposition or Supplemental Coverage

(Pool or Second-Layer Coverage)...................................................................28


6/49


Table o Contents

page 4

5 Claim or Loss

5.01 Conditions Prior to Claim................................................................................31

5.02 Exclusions rom Coverage ..............................................................................32

5.03 Non-Claimable Items......................................................................................32

5.04 Claim Documentation Requirements..............................................................33

5.05 Filing Claims....................................................................................................35

5.06 Check Claim Status........................................................................................36

5.07 Explanation o Benefts ...................................................................................36

6 Exhibits6.01 Determining Hardship ..................................................................................... 37

6.02 MGIC Financial Analysis Form ........................................................................38

6.03 Arrearage and Principal Reduction Defned With Respect

to Loan Modifcations .....................................................................................39

6.04 State Time Frames or Loans with Primary Coverage .............................. 41

6.05 Claim or Loss Form ....................................................................................... 42

7 Deault Servicing Tools7.01 MGIC/Link Servicing.......................................................................................43

7.02 Automated Deault Reporting..........................................................................45

7.03 Secure File Transer.........................................................................................46

7.04 Electronic Funds Transer (EFT).......................................................................46


7/49


Section 1 Reporting

page 5

Questions? Contact MGIC Customer Service,[email protected] 1-800-424-6442.

Section 1:Reporting

1.01 Reporting Requirements

1.02 Reporting Deaults

1.03 Updating Deault Status

1.01 Reporting Requirements

Below is a summary o MGIC reporting requirements. Reer to the sections indicated

or guidelines, reporting/submission options, documentation requirements and

support.

1.01a Deaults Notiy MGIC when a borrower becomes 2 consecutive payments past due by iling aNotice o Delinquency (1.02).

1.01b Deault Status On a monthly basis, report to MGIC both the status o loans in deault and yourservicing eorts to remedy deault as required by the Master Policy.

1.01c HAMP Modications Report on a monthly basis:

HAMP trial status;

all other HAMP modication status updates; AND

all completed (ocial) HAMP modications.

For details, seewww.mgic.com/deault-servicing/treasury-gse-programs.html .

1.01d Loan Modications Report completed modiications that meet MGIC Delegated Guidelines to MGICwithin 30 days o the modiication eective date (2.05a).

For modiications that all outside o MGIC Delegated Guidelines (2.05b), submit

requests to MGIC or approval beore completing the modiication as required by the

Master Policy.
mailto:[email protected]://www.mgic.com/default-servicing/treasury-gse-programs.htmlhttp://www.mgic.com/default-servicing/treasury-gse-programs.htmlmailto:[email protected]


8/49


Section 1 Reporting

page 6


1.02 Reporting Deaults

1.02a Guidelines orReporting Deaults

Notiy MGIC when a borrower becomes 2 consecutive payments past due by iling a

Notice o Delinquency.

Reporting File a Notice o Delinquency via:

MGIC/Link Servicing - Select File/Update a Deaultin the main menu; OR

Automated Deault Reporting (ADR) - Produce your ADR le no earlier than the

20th day and report to MGIC by the 3rd-to-last business day o the month.

Nte Cntact MGIC Custmer Service with any Mrtgage Insurance Premium

questins when a lan becmes delinquent.

Support For questions regarding ADR setup, contact MGIC eCommerce Services,[email protected] 1-800-558-9900.

1.03 Updating Deault Status

Following a deault, report both the status o the loan and your servicing eorts to

remedy the deault.

1.03a Guidelines or Updating

Status viaAutomatedDeault Reporting

(ADR)

Update deault status in ADR monthly.

When updates arent reported, MGIC will send a Monthly Exception Audit (MEA)listing all loans that were previously reported as delinquent, but that are missing rom

the most recent ADR submission.

MGIC will deliver MEA reports to you through Secure File Transer (SFT). We will

notiy you via e-mail that an MEA report has been posted to SFT.

Update the MEA with the most current status o the loans previously reported as

delinquent, but that are missing rom the most recent ADR submission.

Reporting Report changes in status as they occur:

For individual loans, submit changes via MGIC/Link Servicing; select File/Update a

Deaultin the main menu.

For multiple loans, submit changes via:

ADR OR

Secure File Transer - select MEA Updates as the le recipient
mailto:[email protected]:[email protected]:[email protected]:[email protected]


9/49


Section 1 Reporting

page 7


1.03b Guidelines or UpdatingStatus Using a Method

Other Than ADR

MGIC mails a Monthly Delinquency Loan Status Report (MDLSR) on each loan

previously reported in deault. MGIC prints the last reported status on the MDLSR to

help you determine whether the status has changed.

Use the MDLSR to update or provide additional inormation about any o the

ollowing items:

loan status;

current principal balance;

loan due-or date;

delinquency status i a bankruptcy petition was led, include chapter, ling date

and date relie was granted;

date oreclosure proceedings commenced and whether there is a oreclosure sale

scheduled;

oreclosure sale date, i applicable; AND/OR date Borrowers Title or Good and Merchantable Title (as dened in MGICs

Master Policy) was acquired (5.01b).

You can also use the MDLSR to notiy MGIC that:

a loan in deault is now current;

a loan in deault has now been paid in ull;

Nte Paid in full des nt apply t servicing transfers, shrt sales r presales.

a servicing transer has occurred;

the loan number has changed;

the contact person or your organization has changed; AND/OR

your physical address has changed.

Reporting Whenever a change occurs to any o the inormation listed above, return the updated

deault status inormation to MGIC by the 20th o the month via:

MGIC/Link Servicing - Select File/Update a Deaultin the main menu OR

Fax 1-800-353-8781
mailto:[email protected]:[email protected]


10/49


Section 1 Reporting

page 8


11/49


Section 2 Loss Mitigation Workouts

page 9


Section 2:Loss MitigationWorkouts

2.01 Foreclosure Sale Postponement

2.02 Forbearance

2.03 Repayment

2.04 Special US Treasury, GSE Programs

2.05 Loan Modication

2.06 Short Sale

2.07 Deed in Lieu o Foreclosure

Loan workouts can preserve homeownership or the borrowers and prevent losses

as well. The MGIC Master Policy requires you to assist and cooperate with MGIC

in preventing and mitigating MGICs loss. This means that a loan workout, such as

a repayment plan, orbearance plan or loan modiication, must be oered to any

borrowers who have the ability to cure the delinquency.

It is important to work closely with borrowers as soon as they begin to experience

problems making their mortgage payment. It may even be appropriate to extend

assistance to borrowers who are current on their mortgage loan i you learn they

are experiencing a problem. MGIC recognizes the beneits o home retention to all

involved and oers a variety o loss mitigation workout options designed to keep

borrowers in their home. MGIC relies on you to contact troubled borrowers as part

o your loss mitigation duties.

The ollowing loss mitigation workout options can be perormed as long as the terms

o the workout comply with the respective MGIC Guidelines or Delegated Authority

(Delegated Guidelines). These guidelines apply to primary coverage and/or

supplemental coverage (pool or second-layer coverage). MGIC oers delegated

authority to increase eiciency, but reserves the right to revoke this delegation onnotice.

Using Delegated Guidelines is optional; we are happy to work with you on any

workout type. I a workout is submitted or MGICs approval, MGICs nondelegated

requirements will apply, and we may request additional supporting inormation.


action taken by MGIC that may appear inconsistent with this document should be

construed as a waiver by MGIC o any rights or deenses it may have.

2.01 Foreclosure Sale Postponement2.01a Delegated Guidelines

or Foreclosure Sale

Postponement

You have delegated authority to postpone a scheduled oreclosure sale in order

to pursue a orbearance, repayment plan, loan modiication or short sale. This

delegation pertains only to the postponement o the oreclosure sale.

MGICs liability (interest and expenses) may be limited to state time rames (3.02).

Nte Lss mitigatin wrkuts that d nt meet MGICs delegated guidelines fr

frbearance (2.02), repayment plans (2.03), lan mdificatins (2.04, 2.05) r

shrt sales (2.06) must be submitted t MGIC fr prir apprval.


12/49



page 10


2.01b Nondelegated

Requirements orForeclosure Sale

Postponement

Postponing a oreclosure sale to consider a deed in lieu o oreclosure (2.07) does

not meet MGIC Delegated Guidelines and must be approved by MGIC.

Submit a oreclosure sale postponement request and documentation as described

below.

Documentation Submit the ollowing:

date o oreclosure initiation,

the timeline needed or postponement AND

inormation detailing the reason or postponing the oreclosure sale.

Submission Request approval and submit documentation via MGIC/Link Servicing. Select Other

Workout Types in the main menu.

Upon receipt o all required documentation, MGIC will respond to your request

within 5 to 7 business days.

2.02 Forbearance

2.02a Delegated Guidelinesor Forbearance Plans

You have delegated authority to complete a orbearance plan on MGIC-insured

loans that meet the ollowing criteria:

The orbearance term may not exceed 6 months rom the loan due date.

The borrower is unable to make ull monthly payments.

The orbearance plan should be part o a broader workout strategy or homeretention or sale.

At the conclusion o the orbearance agreement, one o the ollowing actions must

occur:

The loan is reinstated.

The loan is paid in ull.

A repayment plan (2.03) that results in ull reinstatement o the loan is executed.

A loan modication (2.04, 2.05) that results in ull reinstatement o the loan is

executed.

The property is sold.

2.02b NondelegatedRequirements or

Forbearance Plans

Forbearance plans alling outside o MGIC Delegated Guidelines (2.02a) must beapproved beore the plan is implemented.

Submit a request and required documentation.


13/49



page 11


Documentation Submit the ollowing:

the terms o the orbearance plan;

a complete nancial package disclosing all income, assets and expenses rom the

last 2 months;

letter o hardship (6.01) written by the borrowers or a personal representative; AND

indication o the borrowers ability to resolve the delinquency.

Nte While we ask that yu make every effrt t btain required dcumentatin,

we realize that is nt always pssible. If despite yur effrts yu are unable t

prduce all f the required dcuments, submit all available dcumentatin fr

MGIC t review the wrkut request.

Submission Submit requests or approval and required documentation via MGIC/Link Servicing.

Select Other Workout Types in the main menu.



2.02c Borrower Adherence I borrowers do not adhere to the orbearance plan payment schedule:

pursue additional available workout considerations AND

proceed with oreclosure (3.01), as applicable.

2.03 Repayment

2.03a Delegated Guidelinesor Repayment Plans

You have delegated authority to complete repayment plans on MGIC-insured

loans that meet MGIC Delegated Guidelines. The repayment term may not exceed

6 months rom the loan due date.


Repayment Plans

Repayment plans alling outside o MGIC Delegated Guidelines (2.03a) must be

approvedbeore the plan is implemented.

Submit a request and required documentation as described below.

Documentation Submit the ollowing documentation and inormation:

the terms o the repayment plan; a complete nancial package disclosing all income, assets and expenses rom the

last 2 months;

a letter o hardship (6.01) written by the borrowers or a personal representative;

AND

proo o the borrowers ability to resolve the delinquency.






14/49



page 12


Submission Submit requests or approval and required documentation via MGIC/Link Servicing.

Select Other Workout Types in the main menu.



2.03c Borrower Adherence I borrowers do not adhere to a repayment plan schedule:



2.04 Special US Treasury, GSE Programs

MGIC oers Delegated Guidelines or a variety o workout options on loans with

primary mortgage insurance coverage under several US Treasury- and GSE-

sponsored programs.

For details, seewww.mgic.com/deault-servicing/treasury-gse-programs.html .

2.05 Loan Modication

A loan modiication should be oered on every MGIC-insured loan when borrowers

have the inancial ability to continue paying their ull mortgage payment (including

escrows) ater the loan is modiied. Reer to 6.03 or the application o arrearage andprincipal reduction with respect to loan modiications.

2.05a Delegated Guidelinesor Loan Modications

You have delegated authority to perorm loan modiications that meet the ollowing

criteria:

The interest rate must not increase.

The modied loan term must be ully amortizing and may be extended up to 50

years rom the loan origination date.

The loan being modied must be delinquent or at risk o imminent deault. MGIC

denes an at risk loan as one that:

is due or the current month and is in imminent danger o deault due to a

known hardship (6.01) OR

has a past due or date but does not have a notice o deault reported.

You can capitalize delinquent payments (PITI), including claimable interest and

expenses, on delinquent loans, as long as the modied unpaid principal balance

(UPB), over the lie o the loan, does not exceed 105% o the original insured UPB.
mailto:[email protected]://www.mgic.com/default-servicing/treasury-gse-programs.htmlhttp://www.mgic.com/default-servicing/treasury-gse-programs.htmlmailto:[email protected]


15/49



page 13


The principal and interest (P & I) portion o the payment must be reduced and

result in a monthly payment that the borrowers can aord:

I the P & I is reduced by 10%, you can capitalize up to 6 payments on loans

insured under a primary policy.

I the P & I is reduced by 20%, you can capitalize rom 7 to 12 payments on

loans insured under a primary policy.

For any policy containing pool coverage, i the P & I is reduced by 30%, you can

capitalize up to 6 payments.

Nte Mdificatins that meet MGIC Delegated Guidelines d nt require prir

apprval. These mdificatins must be reprted t MGIC within 30 days f the

mdificatin effective date.

Nte The capitalizatin n lans that were securitized in a nn-GSE pl with anMGIC credit enhancement will nt be cvered.

Nte When yu submit cmpleted mdificatins t MGIC that have nt been

previusly reprted, they will be evaluated accrding t MGIC guidelines in

place at the time f the mdificatin. MGIC reserves the right t adjust any

claim fr thse mdificatins cmpleted withut MGIC apprval, including

limiting the claimable UPB.

Reporting Report completed loan modiications using one o these options:

For individual modications, use MGIC/Link Servicing. Select Loan Modifcation in

the main menu.

For multiple modications, complete and submit the Loan Modication

Submission Spreadsheet via:

MGIC/Link Servicing - Select Loan Modifcation in the main menu; OR

Secure File Transer - Select Loan Modifcations as the File Recipient.

2.05b NondelegatedRequirements or Loan

Modications

Modiications that all outside o MGIC Delegated Guidelines (2.05a) must be

approved by MGICbeore you perorm the modiication.

Submit your request or approval to MGIC. Additional inormation may be requested

by MGIC as described below.

Documentation MGIC may request additional inormation, such as the ollowing: a complete nancial package disclosing all income, assets and expenses rom the

last 2 months; AND

a letter o hardship (6.01) written by the borrowers or a personal representative

indicating the reason or deault.
mailto:[email protected]://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlmailto:[email protected]


16/49



page 14


Submission Submit requests or approval and required documentation using one o these

options:

For individual modications, use MGIC/Link Servicing. Select Loan Modifcation in

the main menu.

For multiple modications, complete and submit the Loan Modication

Submission Spreadsheet via:

MGIC/Link Servicing - Select Loan Modifcation in the main menu; OR

Secure File Transer - Select Loan Modifcations as the File Recipient.

MGIC will respond to your request within 5 to 7 business days.

2.05c Borrower Adherence I borrowers do not adhere to modiication payment terms:



2.06 Short Sale

A short sale may be an appropriate workout option when all home retention options

have been exhausted, and the borrowers are unable to continue paying their ull

mortgage payment (including escrows).

2.06a Delegated Guidelines or Short Sales

2.06b Borrower Financial Analysis

2.06c Nondelegated Requirements or Short Sales

2.06d Minimum Borrower Contribution2.06e Determining Second Lien Payo Provisions or Short Sales

2.06a Delegated Guidelinesor Short Sales

You have delegated authority to complete a borrower-titled short sale on every

MGIC-insured loan where:

the borrowers dont qualiy or a loan modication and dont have the long-term

nancial ability to continue paying their ull mortgage payment (including escrows);

they are at least 60 days delinquent;

you have determined nancial hardship (6.01and 6.02); AND

the ollowing criteria have been met:

The property is owner-occupied. The loss on the sale o the property does not exceed $150,000

(Total Debt - Net Proceeds = Loss on Sale).

The sale price is based on an interior Brokers Price Opinion (BPO) or appraisal

perormed within 120 days o the sale. (Value should be determined by a broker

other than the listing agent or the buyers agent.)

The property is sold on an as is basis, with the as is value being within 90%

o the repaired value.

The net proceeds at closing are at least 82% o the as is value.
mailto:[email protected]://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlmailto:[email protected]


17/49



page 15


The sale must be an arms length transaction, and the borrower or buyer must

not receive any unds rom the sale o the property.

Third-party vendor loss mitigation ees should not be included on the claim.

you have perormed an analysis o the borrowers nancial situation (2.06b) and

results show:

monthly cash fow is less than or equal to $200;

short-term savings is less than the equivalent o 3 ull mortgage payments

(including escrow); AND

long-term savings is less than or equal to $50,000.

Nte If results f the brrwer financial analysis exceed any f these limits,

Delegated Guidelines d nt apply, and the shrt sale must be submitted t

MGIC fr review under ur nndelegated requirements (2.06c).

Submission Submit the results o the MGIC Financial Analysis (2.06b) via MGIC/Link.



2.06b Borrower FinancialAnalysis

MGIC requires that you perorm a borrower inancial analysis or all short sales to

determine whether the borrowers have surplus unds available to contribute toward

completion o the short sale.

Use MGICs Financial Analysis Form (6.02) or a comparable analysis that

measures:

monthly cash fow, short-term savings AND

long-term savings.

Nte If yu use a financial analysis frm ther than MGICs, d nt include the MI

claim payment in yur calculatins.

Surplus Funds

MGIC deems that borrowers have surplus unds i the results o the inancial analysis

show:

monthly cash fow exceeds $200; OR

short-term savings equals or exceeds the equivalent o 3 ull mortgage payments(including escrows); OR

long-term savings exceeds $50,000.

I surplus unds exist:

MGIC nondelegated requirements or short sales (2.06c) apply;

the short sale must be submitted to MGIC or review; AND


18/49



page 16


MGIC may require that a minimum borrower contribution (2.06d) be provided in

the orm o:

certied unds to the servicer,

an MGIC promissory note (2.06d) OR

a combination thereo.

I required, the contribution is paid at the time o closing on MGICs behal in order to

complete the sale.

N Surplus Funds

I the results show no surplus unds exist, and the loan meets MGIC Delegated

Guidelines (2.06a), you can complete the short sale without MGICs prior approval.

2.06c NondelegatedRequirements orShort Sales

Short sales that all outside o MGIC Delegated Guidelines (2.06a) require MGIC

approvalbeore the sale is completed.

Submit your request or approval to MGIC along with required documentation as

described below.

Documentation MGIC requires the ollowing documents:

a completed MGIC Financial Analysis (6.02) or comparable analysis;

documentation orall sources of income from the last two months, including

but not limited to, paystubs and any asset account that provides 1099 income

rom interest or dividends, such as checking, savings, and investment accounts;

401(k), 403(b) and Individual Retirement Accounts (IRAs); CDs, money market,

stocks, bonds, trusts and annuities;

ederal tax returns or the last year OR IRS Form 4506-T, Request or Transcript o

Tax Return, completed and signed by the borrowers;


indicating the reason or deault;

nancials, income and expense breakdown, current within the last 90 days;

a recent credit report dated within the last 90 days;

an estimated HUD-1 Settlement Statement or Net Sheet;

an executed Oer to Purchase agreement;

a payo statement including all ees and costs within the last 30 days; AND

a Brokers Price Opinion (BPO) or an appraisal no more than 120 days old,

including interior photographs.

Nte MGIC may request additinal dcumentatin prir t apprval f the sale.






19/49



page 17


Nte MGIC will nt pursue a deficiency judgment n an MGIC-apprved shrt sale.

Submission Submit your request or approval and required documentation using MGIC/Link

Servicing. Select Short Sale in the main menu.

2.06d Minimum BorrowerContribution

MGIC may require a minimum borrower contribution in the orm o:

certied unds paid to the servicer at closing,

an MGIC promissory note OR


I required, the contribution is paid at the time o closing on MGICs behal in order

to complete the sale. The borrowers must sign and date the Promissory Note at the

closing o the short sale.

Resurgent Mortgage Servicing sub-services all MGIC Promissory Notes.

Nte Upn executin, send the riginal, signed Prmissry Nte payable t

MGIC t:

Resurgent Mrtgage Servicing

15 Suth Main St., Suite 600

Greenville, SC 29601

Resurgent will send the borrower a welcome letter and perorm all servicing activities

with the borrower.

Support Contact Resurgent, [email protected] 1-800-365-7107; reerence theMGIC certiicate number.

2.06e Determining SecondLien Payo Provisions

or Short Sales

Second lien payo provisions apply to second mortgages owned by a third party (a

legal entity unailiated with the servicer).

I a second mortgage exists, and the short sale has inluence on MGICs claim

settlement (i.e., a second mortgage exists and the second lien holder demands

unds to release the lien), use the ollowing to determine the allowable payo:

MGIC will agree to pay a maximum o $3,000 or an amount not to exceed 50%

o the current outstanding second lien amount to the second lien holder. This

requirement only applies i the net proceeds rom the short sale plus MGICs claim

payment will make the servicer whole.

I the short sale has no inluence on the claim settlement (i.e., MGICs percentage

option settlement amount is less than the loss on sale), MGIC has no requirements

or limitations on the second lien payo provision.


20/49



page 18


2.07 Deed in Lieu o Foreclosure

While MGIC preers a short sale, we understand that there are situations where a

deed in lieu o oreclosure could be the only appropriate workout option.

2.07a Delegated Guidelinesor Deed in Lieu

You have delegated authority to oer a deed in lieu on MGIC-insured loans when the

borrowers have iled bankruptcy or are deceased, and these criteria are met:

The scheduled oreclosure sale date must be more than 60 days rom the date

o approval o the deed in lieu and may not be postponed to allow or deed in lieu

consideration.

The title o the property must be ree and clear o all subordinate liens.


Deed in Lieu

Deed in lieu workouts that all outside o MGIC Delegated Guidelines (2.07a) must be

approved by MGICbeore title is transerred.

MGIC may require that the borrowers provide a minimum contribution (2.07c) beore

proceeding with the deed in lieu.

Submit your request or approval to MGIC along with required documentation as

described below.

Documentation Submit the ollowing documents:

documentation orall sources of income from the last two months, including

but not limited to, paystubs and any asset account that provides 1099 income

rom interest or dividends, such as checking, savings, and investment accounts;

401(k), 403(b) and Individual Retirement Accounts (IRAs); CDs, money market,

stocks, bonds, trusts and annuities;

ederal tax returns or the last year OR IRS Form 4506-T, Request or Transcript o

Tax Return, completed and signed by the borrowers;


indicating the reason or deault;

nancials, income and expense breakdown, current within the last 90 days;

a recent credit report dated within the last 90 days;

a payo statement including all ees and costs within the last 30 days; AND

a Brokers Price Opinion (BPO) or an appraisal no more than 120 days old,

including interior photographs.

Nte MGIC may request additinal dcumentatin prir t apprval f the deed in

lieu.






21/49



page 19


Nte MGIC will nt pursue a deficiency judgment n an MGIC-apprved deed in

lieu.

Submission Submit requests or approval and required documentation using MGIC/Link

Servicing. Select Deed in Lieu in the main menu.



2.07c Minimum BorrowerContribution

MGIC may require a minimum borrower contribution in the orm o:

certied unds paid to the servicer at closing,

an MGIC promissory note OR


I required, the contribution is paid at the time o closing on MGICs behal in order tocomplete the title transer.

Resurgent Mortgage Servicing sub-services all MGIC Promissory Notes.

Nte Upn executin, send the riginal, signed Prmissry Nte payable t

MGIC t:

Resurgent Mrtgage Servicing

15 Suth Main St., Suite 600

Greenville, SC 29601

Resurgent will send the borrower a welcome letter and perorm all servicing activities

with the borrower.

Support Contact Resurgent, [email protected] 1-800-365-7107; reerence the

MGIC certiicate number.


22/49



page 20


23/49


Section 3 Foreclosure

page 21


Section 3:Foreclosure

3.01 Foreclosure Commencement

3.02 State Time Frame Guidelines or Loans with Primary Coverage

3.03 Bankruptcy

3.04 Foreclosure Bidding Instructions

3.05 Deciency Judgments

3.01 Foreclosure Commencement

3.01a Guidelines orForeclosure

Commencement

When a deault cannot be resolved through a loan workout, oreclosure must be

initiated through legal action or publication o the Notice o Sale by the end o the 4th

month (120th day) o deault.

Nte In instances where yu receive returned keys frm hmewners and/r are

made aware f a prpertys abandnment, immediately begin the freclsure

prcess.


24/49



page 22


3.02 State Time Frame Guidelines or Loans with

Primary Coverage

3.02a Guidelines or State TimeFrames

Individual state requirements, borrowers circumstances and the amount o time

needed to complete oreclosure vary.

MGIC monitors and evaluates state time rames to ensure that an appropriate

amount o time is available to process a oreclosure and submit a claim. We have

created a list ostate time frames (6.04)that:

establishes an appropriate time interval between the due date o the rst unpaid

installment and claim ling; and

may be extended by an additional 165 days i the borrowers bankruptcy ling

prevented timely initiation or completion o oreclosure.

Nte A claim that exceeds the state time frame may be curtailed.

State time rames are established by adding the ollowing time intervals:

4 months rom the date o the rst unpaid installment to initiate oreclosure action;

a time period to acquire title (varies by state and oreclosure method); AND

60 days rom title acquisition to submit the claim.

Documentation I the state time rame is exceeded, retain the ollowing documentation or

submission with your claim:

a chronological listing rom the oreclosing attorney detailing the events rom the

date o deault to claim ling date, including:

court delays and attorneys notes,

the reason or delay,

additional inormation regarding all court delays AND

explanations o time lapses i they are not included within the chronology

provided by the oreclosing attorney.

Nte MGIC may allw fr additinal time due t circumstances beynd yur

cntrl. All circumstances must be dcumented thrughly within the

chrnlgy prvided by the freclsing attrney.

Nte Refer t the State Time Frames table (6.04) t determine the amunt f timeMGIC allws t cmplete a freclsure.


25/49



page 23


3.03 Bankruptcy

Dierent rules and procedures may apply to each bankruptcy proceeding. Once

you are notiied that borrowers have iled a bankruptcy petition, it is good practice

to seek the advice o an attorney amiliar with bankruptcy law to determine the best,

most cost-eective course o action or each bankruptcy case.

Prompt, diligent ollow-up on bankruptcy cases can lead to substantial net savings.

3.03a Guidelines orBorrowers Filing

Bankruptcy

Obtaining relie rom bankruptcy under a Chapter 13 iling must be completed within

60 days rom the date o the last payment under the bankruptcy plan.

Initiate oreclosure within 60 days ater:

the automatic stay is lited,

the bankruptcy case is dismissed OR

the borrowers are discharged.

Reporting I borrowers are involved in any bankruptcy proceeding, notiy MGIC via

MGIC/Link Servicing. Provide the ollowing inormation:

the type o bankruptcy led,

the ling date AND

the date the relie rom automatic stay was granted.


26/49



page 24


3.04 Foreclosure Bidding Instructions

MGIC requires servicers to utilize the ollowing oreclosure bidding instructions to

determine the proper bid amount or properties with MGIC-insured loans.

Note that the MGIC claim payment will never exceed our percentage guaranty

option unless we elect to acquire the property.

3.04a Foreclosure Bid CalculationReerence Table

Nte If the bid calculatin exceeds the ttal mrtgage indebtedness, bid the ttal

debt.

PropertyState

Bidding InstructionsProperty

StateBidding Instructions

AK(1) Greater o 85% FMV or investor guidelines NC Greater o 85% FMV or Make Whole Amount i required by investor

AL Greater o 85% FMV or Make Whole Amount i required by investor ND(1) Greater o 85% FMV or investor guidelines

AR Greater o 85% FMV or Make Whole Amount i required by investor NE(1) Greater o 85% FMV or investor guidelines

AZ(1) Greater o 85% FMV or investor guidelines NH Greater o 85% FMV or Make Whole Amount i required by investor

CA(1) Greater o 85% FMV or investor guidelines NJ(1) Start at $100, up to greater o 85% FMV or investor guidelines

CO Greater o 85% FMV or Make Whole Amount i required by investor NM Greater o 85% FMV or Make Whole Amount i required by investor

CT(2) Greater o 85% FMV or Make Whole Amount i required by investor NV Greater o 85% FMV or Make Whole Amount i required by investor

DC Greater o 85% FMV or Make Whole Amount i required by investor NY Greater o 85% FMV or Make Whole Amount i required by investor

DE Greater o 85% FMV or Make Whole Amount i required by investor OH Start at 2/3 Sher i Appraisal, up to greater o 85% FMV or MakeWhole Amount i required by investor

FL Start at $100, up to greater o 85% FMV or Make Whole Amount irequired by investor

OK Start at 2/3 Sher i Appraisal, up to greater o 85% FMV or MakeWhole Amount i required by investor

GA(1) Greater o 85% FMV or investor guidelines OR(1) Greater o 85% FMV or investor guidelines

HI Greater o 85% FMV or Make Whole Amount i required by investor PA(1) Start at Sher i cost, up to greater o 85% FMV or Make WholeAmount i required by investor guidelines

IA(1) Greater o 85% FMV or investor guidelines RI Greater o 85% FMV or Make Whole Amount i required by investor

ID Greater o 85% FMV or Make Whole Amount i required by investor SC(3) Greater o 85% FMV or Make Whole Amount i required by investor

IL Greater o 85% FMV or Make Whole Amount i required by investor SD(1) 100% o total debt

IN Greater o 85% FMV or Make Whole Amount i required by investor TN Greater o 85% FMV or Make Whole Amount i required by investor

KS 100% o total debt TX Greater o 85% FMV or Make Whole Amount i required by investor

KY Start at 2/3 Sher i Appraisal up to 85% o FMV or Make WholeAmount i required by investor guidelines

UT Greater o 85% FMV or Make Whole Amount i required by investor

LA Start at 2/3 Sher i Appraisal up to 85% o FMV or Make WholeAmount i required by investor guidelines

VA Greater o 85% FMV or Make Whole Amount i required by investor

MA Greater o 85% FMV or Make Whole Amount i required by investor VT Greater o 85% FMV or Make Whole Amount i required by investor

MD Greater o 85% FMV or Make Whole Amount i required by investor WA(1) Greater o 85% FMV or investor guidelines

ME Greater o 85% FMV or Make Whole Amount i required by investor WI(1) Greater o 85% FMV or investor guidelinesMI Greater o 85% FMV or Make Whole Amount i required by investor WV Greater o 85% FMV or Make Whole Amount i required by investor

MN(1) Greater o 85% FMV or investor guidelines WY(1) Greater o 85% FMV or investor guidelines

MO Greater o 85% FMV or Make Whole Amount i required by investor

MS Greater o 85% FMV or Make Whole Amount i required by investor Guam(1) Greater o 85% FMV or investor guidelines

MT(1) Greater o 85% FMV or investor guidelines PuertoRico(1)

Greater o 85% FMV or investor guidelines

FooTNoTES

(1) MGIC does not pursue deciencies in these states.(2) In a strict oreclosure action, MGIC requires that you le a motion within 30 days ater the tit le vests, in order to preserve MGICs deciency rights. Please

instruct your attorney accordingly.(3) The deciency should be set orth in the initial pleadings.


27/49



page 25


3.04b Bid CalculationComponents

Fair Market Value (FMV)

Determine the appropriate FMV rom a BPO or appraisal (drive-bys are acceptable)

dated within 120 days o the oreclosure sale. MGIC does not accept values

determined by Automated Valuation Models (AVMs).

I the variance between as-is and repaired value is 10% or less, use the as-is

value or FMV.

I the variance between as-is and repaired value is greater than 10%, use the

repaired value or FMV.

I no repaired value is provided on the BPO or appraisal, use the as-is value or

FMV.

Ttal Debt r Ttal Mrtgage Indebtedness

The total amount o debt associated with the mortgage includes principal, interest

and any additional costs (attorney ees, property preservation costs, etc.) incurred.

Make Whle Amunt

Fannie Mae and Freddie Mac deine the make whole amount as total mortgage

indebtedness less the amount o the anticipated mortgage insurance claim payment.

For questions regarding the make whole bid amount, contact your investor.


28/49



page 26


3.05 Deciency Judgments

3.05a Guidelines orDeciency Judgments

MGIC will notiy you in writing i we determine that you should preserve our

subrogated deiciency rights.

MGIC requires you to preserve its right to a deiciency judgment i the deiciency is

estimated to exceed $30,000.

MGIC will reimburse additional accrued interest and certain expenses resulting rom

this extended redemption period or delay i:

the deciency is preserved or established at MGICs direction AND

there is an extended redemption period or a delay directly related to preserving or

establishing the deciency (beyond the usual custom and practice).

These additional amounts must be identiied clearly on the claim orm.


29/49


Section 4 Real Estate Owned (REO)

page 27


Section 4:Real EstateOwned (REO)

4.01 REO Property Disposition or Primary Coverage

4.02 REO Property Disposition or Supplemental Coverage

(Pool or Second-Layer Coverage)

4.01 REO Property Disposition or Primary Coverage

4.01a Guidelines or PropertyDisposition or

Primary Coverage

MGIC encourages servicers to pursue marketing o REO properties prior to claim

iling or resolution.

List price approval is not required.

Oers deemed acceptable by the insured must be submitted or approval until the

claim is resolved.

Documentation MGIC requires the ollowing documentation or oer approval:

interior valuation with photos;

cost o any repairs made; AND

sale terms including:

oer amount,

closing date,

estimated closing costs or buyer and seller AND

any other miscellaneous terms o sale.

Fr Sales With Influence n the MGIC Claim fr Lss

Include the ollowing with your claim submission:

a copy o the HUD-1 Settlement Statement (required in order to receive a claim

payment).

Nte The MGIC Sale Apprval Letter will indicate whether the ffer is with r

withut influence t the claim fr lss. If the sale has influence t the claim

fr lss and there are changes t the terms f the sale, MGICs apprval is

required.

Fr Sales With N Influence n the MGIC Claim fr Lss

You are not required to provide a copy o the HUD-1 Settlement Statement.

MGIC approval is not required or any change to the terms o sale.

Submission Send an encrypted e-mail to [email protected], including your submission

request and supporting documents.


30/49



page 28


4.02 REO Property Disposition or Supplemental

Coverage (Pool or Second-Layer Coverage)4.02a Guidelines or REO

Property Disposition

or Supplemental

Coverage (Pool

or Second-Layer

Coverage)

MGIC will oversee the insureds marketing activity or all REO properties with

supplemental pool or second-layer coverage.

Listing Apprval

Submit marketing packages or listing approval within 30 days o property

possession.

Upon receipt, MGIC will review the package. Within 3 business days, you will receive

our response, including listing instructions and an approved minimum net sale

proceeds igure. The list price approval is valid or 60 days.

Upon listing, all o the ollowing apply: All list price reductions that may result in less than the approved minimum net sale

proceeds must be approved by MGIC.

An updated BPO is required every 90 days.

Monthly status reports o the marketing activity o each property must be provided

to MGIC.

offer Prcessing Apprval

You may negotiate any oer that will result in a net sale proceeds amount greater

than or equal to the minimum net sale proceeds amount approved by MGIC. Submit

to MGIC or approval any oers deemed acceptable by the insured that do not meet

the minimum net sales proceeds.

Documentation Listing Apprval

Submit marketing packages including:

a copy o the appraisal rom loan origination

contact name and phone number or individual with access to property

2 interior valuations with photos:

1 BPO obtained rom an agent selected by the servicer/insured AND

1 BPO obtained through MGIC Real Estate Operations (order BPOs at

[email protected])

an indication o the recommended marketing strategy, as is or repaired, and

the suggested list price; eviction inormation, as applicable, including start and end dates, and whether the

occupant is a tenant or borrower (as available); AND

bids or repair prior MGIC approval is required or any nonemergency repairs to

be completed on properties with supplemental coverage.


31/49



page 29


offer Prcessing

I you have an oer requiring MGIC approval, submit the ollowing:

a copy o the sales terms, including:

the oer amount, closing date and estimated closing costs or the buyer and

the seller; AND

any other miscellaneous terms o the oer agreement.

Nte Prvide the HUD-1 Settlement Statement as sn as its available, regardless

f when the supplemental (pl r secnd-layer cverage) claim is filed.

Submission Send an encrypted e-mail to [email protected], including your submission

request and supporting documents.


32/49



page 30


33/49


Section 5 Claim or Loss

page 31


Section 5:Claim or Loss

5.01 Conditions Prior to Claim

5.02 Exclusions rom Coverage

5.03 Non-Claimable Items

5.04 Claim Documentation Requirements

5.05 Filing Claims

5.06 Check Claim Status

5.07 Explanation o Benets


action taken by MGIC that may appear inconsistent with this document should be

construed as a waiver by MGIC o any rights or deenses it may have.

5.01 Conditions Prior to Claim

5.01a Guidelines orCompliance

In order to be entitled to a claim payment, you must comply with all conditions

under the MGIC Master Policy, including but not limited to the ollowing:

File the Notice o Deault and ongoing monthly reporting in a timely manner

(1.02, 1.03).

Make a good aith eort to mitigate MGICs loss (Section 2).

Commence and complete oreclosure as required by MGIC (Section 3).

Obtain MGICs approval as required on borrower-titled (5.01b) or lender-titled

sales o the property (Section 4).

File the claim or loss in a timely manner (Section 5).

Provide supporting documentation and inormation as requested by MGIC (5.04).

5.01b Guidelines or TitleAcquisition

Acquisition o title to the property is generally a prerequisite to iling a claim or loss,

subject to the ollowing requirements:

Gd and Merchantable Title

Good and Merchantable Title is title to the property that is ree and clear o all liens,

restrictions and encumbrances, including the borrowers right o redemption, other

than title exceptions permitted by MGIC.

Nte Gd and Merchantable Title is required fr all lans fr which MGIC elects

t acquire the prperty and lans with supplemental cverage (pl r

secnd-layer cverage).

Brrwers Title

Borrowers Title is title to the property as was vested in the borrower at the time o

conveyance through oreclosure or deed in lieu o oreclosure.

Nte If MGIC des nt elect t acquire title t the prperty in settlement f the

claim, nly Brrwers Title is required t file the claim.


34/49



page 32


other Acceptable Title Transfer Scenaris

a borrower-titled short sale is closed; OR

the property is acquired by a third-party bidder at the oreclosure sale; OR

MGIC exercises its option to accelerate ling o a claim or loss.

5.02 Exclusions rom Coverage

Reer to Section 4 o MGICs Master Policy or inormation regarding situations that

may jeopardize or aect claim payments.

To view a copy o the MGIC Master Policy, see Master Policyholder resources at

www.mgic.com/lender-services/index.html .

5.03 Non-Claimable Items

Certain ees are non-claimable, including, but not limited to:

Attorney ees associated with robo-signing

Attorneys ees greater than 3% o the sum o the claimable Unpaid Principal

Balance (UPB) and interest due

Automated Valuation Model (AVM) ees

Borrower outreach/eld service/door knock ees

Expenses associated with environmental hazards

Incentive ees

Mortgage insurance premiums

Multiple BPOs conducted within the same 120-day period may be limited

Sherris deposits

Tax penalties and interest

Technology ees

Transaction ees

Vendor ees
mailto:[email protected]://www.mgic.com/lender-services/index.htmlhttp://www.mgic.com/lender-services/index.htmlmailto:[email protected]


35/49



page 33


5.04 Claim Documentation Requirements

Providing all required documentation will expedite processing your claim.

Submit supporting claim documents beore, during or ater iling a claim.

Submitting documents does not constitute iling o a claim; you must ile a claim

separately. See claim iling options on www.mgic.com/deault-servicing/claims.html .

Nte When MGIC requests a dcument t supprt yur claim, and if after multiple

and reasnable effrts t lcate the specific dcument, yu have determined

yu will never be able t supply it, prvide fficial ntificatin t MGIC using

the Unable to Provide selectin within MGIC/Links Claim Documents feature.

5.04a Minimum DocumentationRequirements or all Claims

MGIC requires the ollowing documentation to process your claim:

a complete loan payment history rom origination to claim ling date (i unavailable,

no less than the last 12 months o borrower payment history) AND:

the running escrow account balance or the accounting o how you arrived at

the escrow account balance being claimed AND

the running suspense account balance;

a chronological, comprehensive list o your eorts and the events pertaining to:

collection,

oreclosure,

loss mitigation,

bankruptcy, other legal activities AND

i the state time rame (3.02) is exceeded, a list o events rom the date o deault

to claim ling date to explain why;

a copy o your collections and loss mitigation systems notes;

evidence o title transer (oreclosure deed);

i a third-party outbid, a copy o the third-party check;

a copy o the complete loan origination package and closing documents; AND

any other documentation requested by MGIC (5.04b).

Submission Submit supporting claim documents using MGIC/LinksClaim Documents eature.
mailto:[email protected]://www.mgic.com/default-servicing/claims.htmlhttp://www.mgic.com/default-servicing/claims.htmlmailto:[email protected]


36/49



page 34


5.04b Potential AdditionalDocumentation

MGIC may require additional documentation in order to process your claim, based

on the speciics o the loan, certiicate or claim type.

Pay-optin ARMs r Lans with Negative Amrtizatin

a copy o the Pay-Option ARM Note

Lss Mitigatin Effrts

terms o any orbearance agreements, repayment plans or modication

agreements

servicing notes, including a complete chronology o events

Shrt Sales

your borrower-titled short sale approval letter;

a copy o the nal HUD-1 Settlement Statement;

a Brokers Price Opinion (BPO) or an appraisal no more than 120 days romapproval, including interior photographs;

contribution inormation, i applicable; AND

a copy o the executed sales contract.

Deed in Lieu

Your deed in lieu approval letter;

the Deed transerring title; AND

contribution inormation, i applicable.

REo Sales

a copy o the nal HUD-1 Settlement Statement and redemption statements;

a valuation (BPO or appraisal) with any repair addenda; AND

the approval letter containing the sale terms.

GSE Supplemental Cverage Claims (pool or second-layer coverage)

Primary coverage claim payment amount and date paid



37/49



page 35


5.04c AcquisitionDocumentation

I MGIC elects to acquire title to the property, you are required to provide MGIC or its

designee the ollowing documents prior to claim payment:

a recordable warranty deed (e.g., Grant Deed or Caliornia property, Covenant

Deed or Michigan property) containing the normal and customary warranties

and covenants in the usual and customary orm (Quit Claim Deeds are not an

acceptable orm o conveyance to MGIC);

all appropriate state and county transer orms (executed, i required);

evidence o Good and Merchantable Title;

evidence that all property taxes are paid current as o the date o acquisition; AND

i the property is subject to a homeowners association/condo assessment, a

written statement rom the association showing that:

all dues, assessments, penalties and interest are paid current; AND

all led liens have been released or satised.


5.05 Filing Claims

5.05a Primary CoverageClaims

I Fannie Mae is the investor, ile the claim on behal o Fannie Mae.

I Freddie Mac is the investor, do not ile a claim; Freddie Mac will ile directly with

MGIC.

For all other investors, its typical that you ile the claim on their behal.

Nte Servicing dcumentatin requests are sent t and typically fulfilled by the

Servicer regardless f Investr.

Time Frame Requirements A claim on a loan must be iled within 60 days* ater title transer which, could be

one o the ollowing:

a oreclosure sale has been completed OR

the property is sold as a borrower-titled short sale (5.01b) with MGIC approval, i

necessary.

*Unless a longer period o time is approved by MGIC in writing

Nte A deed in lieu f freclsure must be executed and the claim filed within 90days frm the date f apprval frm MGIC.

Submission See claim-iling options at www.mgic.com/deault-servicing/claims.html .


38/49



page 36


5.05b SupplementalCoverage (Pool

or Second-Layer

Coverage) Claims

I a loan has GSE supplemental coverage (pool or second-layer coverage), the

investor will ile the claim.

For non-GSE, insured loans with supplemental coverage (pool or second-layer

coverage), you are responsible or iling the claim.

Time Frame Requirements File within 60 days AFTER closing the sale o the property.

Submission See claim-iling options at www.mgic.com/deault-servicing/claims.html .

5.05c Supplemental/ReviewClaims

You can ile a supplemental/review claim or one or a combination o the ollowing

reasons:

To request additional expenses on a paid claim

To request that MGIC to reconsider expenses previously disallowed on a paid claim

Nte All requests must include supprting dcumentatin that has nt already

been prvided.

Time Frame Requirements File within 90 days o the initial claim payment. MGIC will not consider requests and

supporting documentation submitted ater 90 days rom the initial claim payment.

Submission When requesting additional expenses on a paid claim:

Submit additional expense inormation using the supplemental/review claim orm

on MGIC/Link Servicing.

Send all supporting documentation via Secure File Transer. Select Claimsquery

as File Recipient.

When requesting review and payment o previously disallowed items:

Send all supporting documentation viaSecure File Transer. Select Claimsquery

as File Recipient.

5.06 Check Claim Status

Regardless o how you ile a claim, check its status(7.01g)onMGIC/Link Servicing.

5.07 Explanation o Benets

To help you understand how we arrived at a claim beneit amount, reer to the

Explanation o Beneits (EOB) statement. The EOB statement includes a detailed

explanation o the interest and expense calculations and a claim summary.

Regardless o how you ile a claim, access its EOB(7.01g)onMGIC/Link Servicing.

In addition, Electronic Funds Transer (EFT) users can view and print the EOB rom

the MGIC/Link Servicing Reports menu (7.01h).


39/49


Section 6 Exhibits

page 37


Section 6:Exhibits

6.01 Determining Hardship

6.02 MGIC Financial Analysis Form

6.03 Arrearage and Principal Reduction Dened With Respect to Loan Modications

6.04 State Time Frames or Loans with Primary Coverage

6.05 Claim or Loss Form

6.01 Determining Hardship

MGIC requires that you determine borrower hardship or certain loan workout

options. We deine hardship as the borrowers long-term inability to maintain

mortgage payments due to circumstances beyond their control.

To determine hardship, conduct a thorough review o the borrowers inancial

inormation (2.06b).

Here are some examples o situations MGIC may deine as hardship:

involuntary unemployment;

involuntary relocation;

divorce;

reduction in income used to sustain mortgage debt that was beyond the

borrowers control;

serious illness, long-term incapacity or death o a co-borrower; AND

call to active military duty.

These examples do not explicitly deine all potential hardship situations. I you are

not certain the borrowers situation meets MGICs hardship deinition, submit the

workout request or MGICs approval.

Submit your request or approval and required documentation to MGIC as

described below.

Documentation MGIC requires a letter o hardship, written by the borrowers or a personal

representative, indicating the reason or deault.

Submission Request approval and submit documentation via MGIC/Link Servicing. Select Other

Workout Types in the main menu.


40/49


Section 6 Exhibits

page 38


6.02 MGIC Financial Analysis Form

Use the MGIC Financial Analysis Form or a comparable analysis to measure

monthly cash low, short-term savings and long-term savings. (I you use a orm

other than MGICs, do not include the MI claim payment in your calculations.)

The orm is available on MGIC/Link Servicing. Select Short Sale in the main menu.

Enter the certiicate number and select MGIC Financial Analysis Form.


41/49


Section 6 Exhibits

page 39


6.03 Arrearage and Principal Reduction Dened,

With Respect to Loan Modications6.03aArrearage

6.03b Principal Reduction

6.03c Examples

Reer to these deinitions or the application o arrearage and principal reduction

as part o a loan modiication. The table below includes examples o use and the

impact on claim payment.

6.03a Arrearage When a loan is delinquent, a modiication typically will address the arrearage

(delinquent PITI payments, including claimable interest and expenses). MGIC deinesthe options in the ollowing ways:

Capitalize arrearage. The arrearage is added to the principal balance o the loan

and included in the amortization calculation.

Nte Althugh nt cmmn, the arrearage may be identified as deferred r a

frbearance, but still amrtized. This is the same as capitalizing the arrearage.

Defer/frbear arrearage. The actual principal amount due and payable at

maturity o the loan (or sale o the property) is the original unmodied principal

amount, less any and all periodic principal payments the borrowers make until

maturity or sale. However, the contractual payment the borrowers make is

no longer ully amortized, as the arrearage is excluded rom the amortization

calculation (deer/orbear arrearage).

Balln payment arrearage. The arrearage amount is due on a specic date,

typically paid in a lump sum at the end o the mortgage term. The contractual

payment the borrower makes is no longer ully amortized as the arrearage is

excluded rom the amortization calculation.

6.03b Principal Reduction The modiication includes a component to reduce the current unpaid principalbalance (UPB). The amount o the principal reduction can be orgiven or handled as

a orbearance.

Principal reductin/frgiveness. The current UPB is reduced by a specicamount. Payments are based on the new, reduced UPB. The principal may be

orgiven:

in total at the time o the modication OR

over a period o time i the borrower remains current.

In some cases, a lender may require that the borrowers share any equity in the

property at time o payout.

Principal frbearance. The principal amount is not amortized (included in the

monthly payments), but is due in ull at the time o sale or payo o the loan.


42/49


Section 6 Exhibits

page 40


6.03c Examples

Descriptin Claim Impact1

Capitalize

Arrearage (may be

called deferredor

forbearance, but it

is amortized)

UPB = $200,000Loan is delinquent by $3,000

Arrearage = $3,000 fully amortized (capitalized)

New UPB = $203,000

The borrowers are responsible or paying on a UPB f $203,000.

Claimable amount = $203,000

Forbear (defer or

balloon) arrearage


Arrearage = $3,000 (orbear, balloon or deer), nt amortized

New UPB = $200,000

The borrowers are responsible or paying on a UPB f $200,000with a inal payment o $3,000 due upon sale or payo o theloan, in addition to any remaining amount o the modiied UPB.


Calculate interest on

$200,000

No interest calculated on

orbearance amount o$3,000

Capitalize

arrearage; forbear

principal


Arrearage = $3,000 ully amortized (The amount is capitalized,but the Servicer may reer to it as orbearance, ballooned ordeerred.)

Principal = $100,000 (orbear, balloon or deer), nt amortized

New UPB = $103,000

The borrowers are responsible or paying on a UPB f $103,000with a final payment f $100,000 due upon sale or payo o the

loan, in addition to any remaining amount o the modiied UPB.



$103,000


$100,000

Forbear (defer or

balloon) arrearage;

forbear principal


Arrearage = $3,000 (orbear, balloon or deer), nt amortized

Principal = $100,000 (orbear, balloon or deer), nt amortized

New UPB = $100,000

The borrowers are responsible or paying on a UPB f $100,000with a final payment f $103,000 due upon sale or payo o theloan, in addition to any remaining amount o the modiied UPB.



$100,000


$103,000

Forgive (reduce)

principal2UPB = $200,000Loan is delinquent by $3,000

Arrearage = $3,000 capitalized, fully amortized Principal = $50,000 orgiven, nt amortized

New UPB = $153,000

The borrowers are responsible or paying on a UPB f $153,000.The $50,000 in principal may be completely orgiven or may bedue upon sale or payo o the loan based on the terms o theprogram.



$153,000 calculated with

interest


$50,000

1 The claimable amount listed assumes the loan modiication meets MGICs guidelines or delegated authority or that it

was reviewed and approved by MGIC.2 I the orgiveness is the result o litigation or a settlement, the orgiven amount may not be claimable.


43/49


Section 6 Exhibits

page 41


6.04 State Time Frames or Loans with Primary Coverage

The table below lists the maximum number o days MGIC allows to complete a

oreclosure or loans with primary coverage in various locations.

State Method o Foreclosure

# o Days romDue Date

o 1st UnpaidInstallment toClaim Filing*

Paid ThroughDate

Prior toClaim Filing* State Method o Foreclosure

# o Days romDue Date

o 1st UnpaidInstallment toClaim Filing*

Paid ThroughDate

Prior toClaim Filing*

AL Power o Sale 240 270 MT Power o SaleJudicial w/Redemption

300660

330690

AK Trustee SaleJudicial w/Redemption

300690

330720

NE Trustee SaleJudicial

270390

300420

AZ Trustee SaleJudicial

300450

330480

NV Trustee SaleJudicial w/Redemption

300660

330690

AR Power o Sale 300 330 NH Power o Sale 240 270

CA Trustee Sa leJudicial w/Redemption 300900 330930 NJ Judicial w/o DeciencyJudicial w/Deciency 480660 510690

CO Trustee Sale w/Redemption 345 375 NM Judicial w/Redemption 360 390

CT Strict ForeclosurePower o Sale

360420

390450

NY Judicial 480 510

DE Judicial 390 420 NC Trustee Sale 240 270

DC Trustee Sale 240 270 ND Judicial w/Redemption 360 390

FL Judicial 390 420 OH Judicial w/Conrmation 450 480

GA Power o Sale 240 270 OK Judicial 360 390

Guam Non-Judicial 360 390 OR Trustee Sale 330 360

HI Judicial 390 420 PA Judicial 390 420

ID Trustee SaleJudicial w/Redemption

360540

390570

PuertoRico

Judicial 540 570

IL Judic ia l w/RedemptionJudicial w/Redemption-

Deciency

Judicial w/Redemption-Abandonment

450

480

300

480

510

330

RI Power o Sale 240 270

IN Judicial w/Redemption 420 450 SC Judicial w/o DeciencyJudicial w/Deciency

330360

360390

IA Non-JudicialJudicial w/o DeciencyJudicial w/o Deciency

(Non-Owner-Occupied)Judicial w/Deciency

300480

360660

330510

390690

SD Judicial w/Redemption 480 510

KS Judicial w/Redemption 450 480 TN Trustee Sale 240 270

KY Judicial 360 390 TX Power o SaleJudicial

220360

250390

LA Judicial 360 390 USVirginIslands

Trustee SaleJudicial w/Deciency

510 540

ME Judicial w/Redemption 510 540 UT Trustee SaleJudicial w/Redemption

330510

360540

MD Trustee Sale w/Redemption 285 315 VT Judicial w/Redemption 420 450MA Trustee Sale 390 420 VA Trustee Sale 240 270

MI Power o Salew/Redemption

Power o Sale-Abandonment

450

300

480

330

WA Trustee SaleJudicial w/Deciency

330690

360720

MN Power o Sale/RedemptionJudicial w/Deciency

450660

480690

WV Trustee Sale 270 300

MS Trustee Sale 240 270 WI Judicial w/o DeciencyJudicial w/Deciency

450630

480660

MO Trustee Sale 240 270 WY Power o Salew/Redemption

405 435

*Add up to an additional 165 days i a borrowers bankruptcy ling prevented timely initiation or completion o oreclosure.

Support Reer to MGICs State Time Frame Guidelines (3.02) or additional inormation.


44/49


Section 6 Exhibits

page 42


6.05 Claim or Loss Form

File a claim or loss using MGIC/Link Servicings secure, web-based orm.

Or i youre unable to use MGIC/Link, complete the editable version o the

orm, print and ax to MGIC, 1-800-353-8781. Aull-size version is available at

www.mgic.com/deault-servicing/deault-guides.html .

Uniform Mortgage Insurance - Claim for LossMortgage Guaranty Insurance Corporation P.O. Box 525, Milwaukee, WI 53201-0525

MGIC

Insured Information

Insurance Type Claim Type

1. Primary Pool 2. Initial SupplementalOther

Mortgage Insurance Company Name Date This Claim Submitted

3. Mortgage Guaranty Insurance Corporation 4. / /

Mortgage Insurance Company Address Mortgage Insurer Telephone Number

5. P.O. Box 525, Milwaukee, WI 53201 6. 1 800 424 6442

Insureds Name Insureds Loan Number

7. 8.

Address Certicate Number

9. 10.

City State Zip Master Policy Number

11. 12.

Borrower Information

Borrower Name(s) % Coverage Type Coverage

13. 14. % 15.

Property Address City State Zip

16.

Servicer Information

Servicer Name (If dierent than Insureds name) Servicer Loan Number

17. 18.

Servicer Address (If dierent than Insureds address) City State Zip

19.

Payee Information

Payee Name (If dierent than Insureds name) Payee Loan Number

20. 21.

Payee Address (If dierent than Insureds address) City State Zip

22.

Investor Information

Investor Name (If dierent than Payees name) Investor Loan Number

23. 24.

71-20019 04/10 MGIC Claim for Loss Form Page 1 of 3
mailto:[email protected]://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://www.mgic.com/default-servicing/default-guides.htmlhttp://w