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MGIC Master Policy, #71-43342
covering Insurance Applications dated Oct. 1, 2014, and after

Our Master Policy covers loans whose Insurance Applications are dated on or after Oct. 1, 2014. Access the Policy and endorsements in the Resources column at right.

Insurance Applications that you initially submitted before Oct. 1, 2014, and resubmitted after that date are covered under MGIC Master Policy, #71-7135.

Gold Cert Coverage

Our Gold Cert Coverage offers rescission relief from Borrower misrepresentation, underwriting errors and Material Value Variances for all Loans after 36 months. You can also opt for this protection at 12 months.

All Loans, regardless of how you submit them, are eligible for either coverage level. The 12-month option requires that you submit Verification Information at application and/or after you notify MGIC to activate insurance.

36-Month Coverage

All Loans receive Gold Cert rescission relief from borrower misrepresentation, underwriting errors and Material Value Variances after 36 months if:

  • The Loan is current
  • All Loan Payments were made from the Borrower's Own Funds
  • No more than 2 Loan Payments were 30 days late; no Loan Payment was 60 or more days late
  • The Loan was not subject to a Workout
  • There is no First-Party Misrepresentation or Pattern Activity

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12-Payment Protection

You have the option to request Gold Cert 12-Payment Protection, which provides rescission relief for borrower misrepresentation and underwriting errors and for Material Value Variances if all of the following are met:

  • You submitted Verification Information as required, and the Loan passed our 12-Payment Protection Review
  • The Loan was not subject to a Workout
  • None of the first 12 Loan Payments was 30 or more days Delinquent
  • All Loan Payments were made from the Borrower's Own Funds
  • There is no First-Party Misrepresentation or Pattern Activity

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Verification Information

Verification Information is documentation we require to determine 12-Payment Protection eligibility. To request 12-Payment Protection, submit Verification Information within 90 days of notifying us to activate insurance.

12-Payment Protection for borrower misrepresentation, underwriting errors and Material Value Variances

  • MGIC Delegated MI Underwrite Loans — Submit a complete Loan Origination File and Closing File
  • MGIC MI Underwrite Loans — Submit:
    • Any Loan Origination File documents submitted at MI application that have changed since
    • Any Loan Origination File documents that were not submitted at MI application
    • A complete Closing File
  • MGIC MI Underwrite/Full-Doc Review Loans — Submit:
    • Any Loan Origination File documents submitted at MI application that have changed since
    • A complete Closing File

See our Gold Cert 12-Payment Protection Checklist for required Verification Information documentation.

12-Payment Protection for Material Value Variances only

  • MGIC Delegated MI Underwrite Loans — Submit the appraisal documents
  • MGIC MI Underwrite Loans — Submit the appraisal documents ONLY IF they weren't submitted at MI application or they have changed since
  • MGIC MI Underwrite/Full-Doc Review Loans — Submit the appraisal documents ONLY IF they have changed since MI application

Appraisal documents include all addenda, attachments, schedules, photographs and other information included by the appraiser.

How to submit Verification Information

From the Loan Center:

  • Select the Gold Cert Report tab
  • Click Search
  • Locate the loan
  • Click its Upload Docs icon

To fax Verification Information, complete the Gold Cert Verification Information Submission Form and fax it along with your documentation.

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Underwriting

Underwriting Documentation Submission Options

Under our Master Policy, flexible submission options allow you to continue to tailor the way you do business, submitting data and/or documents.

Delegated MI Underwrite

To apply for MGIC mortgage insurance under our Delegated MI Underwrite program, you must:

  • Meet program requirements
  • Have our Delegated Underwriting Endorsement

Submit data-only files via the Loan Center, your LOS or other electronic data interface.

When you apply for MGIC MI through our Delegated MI Underwrite program, you represent:

  • Data is true and accurate and consistent with the Loan Origination File
  • The Loan meets our Eligibility Criteria

We are not responsible for:

  • The accuracy of the data you submit
  • Determining whether the information you submit meets our Eligibility Criteria

If you don't qualify for our Delegated MI Underwrite program, apply for MI via our MGIC MI Underwrite or MGIC MI Underwrite/Full-Doc Review programs below.

Advantages of using our Delegated MI Underwrite:

  • You don't need to gather, scan and submit any documents
  • With a data-only submission, you'll typically receive a response in less than one minute
  • You have the option of adding Gold Cert 12-Payment Protection for Borrower misrepresentation, underwriting errors and Material Value Variances or just Material Value Variances by submitting the appropriate Verification Information

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MGIC MI Underwrite

Submit documents with your MGIC MI application via the Loan Center or other document delivery service, fax or courier.

Upon reviewing the documents you submit, we may request additional documentation.

When you apply for MGIC mortgage insurance with an MGIC MI underwrite, you represent:

  • Submitted Loan documentation is true and correct
  • The information you have not submitted meets our Eligibility Criteria

We are responsible for:

  • Accurate data entry
  • Determining whether the information you submit meets our Eligibility Criteria

Advantages of using our MGIC MI Underwrite:

  • You have fewer documents to gather, scan and send
  • We are responsible for evaluating the documents you submit
  • We make an MI underwriting decision based on the documents you submit
  • You have the option of adding Gold Cert 12-Payment Protection for Borrower misrepresentation, underwriting errors and Material Value Variances or just Material Value Variances by submitting the appropriate Verification Information

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MGIC MI Underwrite/Full-Doc Review and ATR Check

Submit a complete Loan Origination File via the Loan Center or other document delivery service, fax or courier.

In order to use this option through the Loan Center, contact your MGIC Account Manager to arrange to make this a default submission option.

When you apply for MGIC mortgage insurance with an MGIC MI Underwrite/Full-Doc Review:

  • You represent:
    • Submitted Loan documentation is true and correct
    • You have no other information that affects compliance with our Eligibility Criteria
  • We are responsible for:
    • Accurate data entry
    • Determining whether the information you submit meets our Eligibility Criteria
    • Reviewing Loan documentation, based on the Consumer Financial Protection Bureau's (CFPB) Ability to Repay (ATR) checklist regarding Borrowers':
      • Current or reasonably expected income or assets
      • Current employment status
      • Monthly payment on the covered transaction
      • Monthly payment on any simultaneous Loan
      • Monthly payment for Mortgage-related obligations
      • Current debt obligations, alimony and child support
      • Monthly debt-to-income ratio or residual income
      • Credit history

Please note: MGIC is not a creditor subject to the Dodd-Frank Ability-To-Repay (ATR) determination requirements, and our ATR Check is not intended to satisfy your independent responsibility for complying with regulatory or investor requirements. We review only your submitted loan documentation, and we do not independently reverify any information for ATR determination.

Submission Documents

  • MGIC Mortgage Insurance Application
  • 1008/1077 Uniform Underwriting and Transmittal Summary
  • Agency AUS Findings/Feedback Report, if applicable
  • 1003/65 Original Loan Application
  • Credit report and all other credit documentation, including Verification of Rent or Mortgage
  • Income and employment verification for all Borrowers
  • Asset verification for all Borrowers
  • Appraisal, including all addenda, attachments, schedules, photographs and other information included by the appraiser
  • Sales contract or equivalent
  • Loan approval notes
  • Underwriting and processing notes
  • Any other document used in the underwriting process not listed above

New MGIC Underwriting Guide

Our new Underwriting Guide incorporates changes and updates for doing business with MGIC under our Master Policy. Reorganized for improved usability, the new Guide is effective as of Oct. 1, 2014.

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Servicing

Impact Summary for Servicers

Our Impact Summary for Servicers highlights changes effective with our Master Policy and identifies sections of the document that may affect your servicing processes.

Servicing Guide

The Servicing Guide provides clarity, transparency and information related to our servicing guidelines. This guide is a combination of our previous MI Servicing and Default Servicing Guides and incorporates changes as a result of the Master Policy.

Servicing Report

Our Master Policy requires servicers to submit a monthly Servicing Report, which includes loan status and other key information for all your MGIC-insured loans (both current and in default). To make this process easier, you can submit this information for your entire MGIC-insured portfolio. The Servicing Report should be submitted by the 25th of the month for the prior month's ending status.

We will use these reports to be sure our records align and meet our GSE reporting requirements.

We provide three Servicing Report template options. Choose the template that best fits your needs:

Report Name Description Data Elements Templates Version
MGIC Data Set Our minimum data set to meet the Servicing Report requirement. 19 MGIC Data Set November 2014
MILAR* — 32 This abbreviated template includes a subset of the industry-approved data fields and is intended for servicers who do not currently submit the MILAR—169. 32 MILAR-32 November 2014
MILAR* — 169 This is an MI-industry-approved template for reporting insured loan status. 169 MILAR-169 November 2014

*Mortgage Insurance Loan Activity Report

Timing

We recognize that it may take some time for you to develop a reporting process, therefore, we will require this report no sooner than July 1, 2015. See our recent Servicing Bulletin (09/16/2014). As of July 1, 2015, one of the MGIC-accepted options identified above must be used to submit loan portfolio data on a monthly basis.

Other Reporting

The Servicing Report will not change or replace any reports you currently provide. Reports such as defaults, loan modifications, MI cancellations or any other specific reporting are still required.

Loan modification reporting can be accomplished via the MILAR-169 report if the appropriate data elements are provided. Contact your MGIC Servicing Relationship Manager for details on this approval process.

Report Submission

Submit your completed template using one of these options:

  • MGIC's Secure File Transfer (SFT) Select Servicing Report as the file recipient
  • Secure e-mail to servicingreport@mgic.com
  • Any other MGIC-approved secure document delivery service

Service Bureaus

We are working with service bureaus to develop a standardized servicing report. We will provide updates as this effort progresses. Contact your service bureau for more specific information.

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Q & A

General

Do I need to sign something to be activated under the new Master Policy?

No, you do not need to sign anything. No action is required on your part. The terms of the new Policy will cover all MI applications you submit beginning on the effective date noted on your Declaration Page.

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Why did you issue Delegated and co-op endorsements to all customers?

All data submissions are covered under our Delegated Endorsement. All customers who are eligible for data-only submissions will need this endorsement.

By issuing the co-op endorsement to all customers, we will eliminate delays associated with issuing a new endorsement for any customers who are or become involved in co-op Loans.

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Has the Commitment/Certificate changed?

There are several key changes to the Commitment/Certificate:

  • It displays both the Insured's principal place of business and ordering branch office
  • Your Loan number is now displayed on the top of the document to locate more easily
  • The Endorsements and Notes section will show the Master Policy form number as well as those for all applicable endorsements
  • The Endorsements and Notes section will also note the applicable underwriting program — Delegated, MGIC MI Underwrite or MGIC Underwrite/Full-Doc Review
  • With the new Commitment/Certificate, you will have the option to display the borrower's DTI based on our calculation and used to approve the loan for MI

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Rescission Relief

What rescission relief features does your Master Policy include?

All Loans, regardless of how you submit them, are eligible for our Gold Cert rescission relief.

What is MGIC going to do with the information in the Loan Origination and Closing Files?

In order to grant Gold Cert 12-Payment Protection for Borrower misrepresentation and underwriting errors, we are required by the Agencies to reunderwrite the Loan File to ensure:

  • There are no inconsistencies
  • The transaction closed as represented in the Origination File

This reunderwrite must be more than a standard MI underwrite in that, should we discover any questionable information, we are obligated to take any reasonable steps necessary to confirm that there are no material deficiencies in the information or the underwrite.

Regarding value, we must confirm that the value we are relying upon is supported by the appraisal and other Property valuation information.

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What is "Pattern Activity"?

Pattern Activity means a pattern of misrepresentations related to or in connection with Eligibility Criteria, whether by information furnished, omitted, falsified or forged, involving two or more Loans, at least one of which is insured by us, and either:

  • Two or more Pattern Parties or
  • The Borrower and one or more Pattern Parties

A Pattern Party is:

  • Any individual acting with actual or apparent authority for the Initial Insured
  • Any First Party other than the Initial Insured
  • Any Property seller, Property builder, real estate broker or real estate agent

A First Party, with respect to a Loan, is the Initial Insured and any other Persons (other than the Borrower or the Borrower's agent) who performed or had a duty to perform any acts related to the Insurance Application or Origination of such Loan. See MGIC Master Policy Section 1, Definitions, for details.

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What does "not subject to a Workout mean"?

A Workout means any assumption or modification of the terms of a Loan, regardless of its status, including:

  • Any change in the principal balance, interest rate, payment terms or amortization schedule
  • Any change in or release of the Property, subject to the Mortgage
  • Any forbearance or partial release of the Borrower's Loan obligations
  • A Pre-Settlement Sale by the Borrower
  • Acceptance of a deed in lieu of foreclosure

Loans subject to any of the events listed above are not eligible for Gold Cert 12- or 36-month rescission relief.

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Does MGIC still allow a variance of up to 15% of the Property value?

Yes. Our new Master Policy defines a "Material Value Variance" as an Eligibility Criteria Violation relating to the Property value that exists when:

  • There is a percentage variance of 15% or more between the Origination Valuation and the opinion of market value for the subject Property, as determined by a licensed appraiser in an appraisal report prepared at our request as of the date of the Origination Valuation in compliance with industry standard appraisal practices, AND
  • The loan-to-value ratio calculated as of the Certificate Effective Date using the appraised value from our requested appraisal report does not meet the Eligibility Criteria applicable to the Loan

Determine the percentage variance by dividing the difference between the two values by the Origination Valuation, expressed as a percentage.

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Servicing

Are there any changes to Premium billing?

Yes. Under the Master Policy, if a Loan is in Default, we will continue to bill for renewal Premiums.

Your Premium billing cycle and the method by which you receive your bill will remain the same.

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Does the Master Policy change the timing of when a Claim should be filed?

No. Continue to file Claims within 60 days of the earlier of:

  • Acquisition of Borrower's Title
  • Completion of a Property Sale

In states where a redemption period exists, you have the option to file the Claim anytime after the foreclosure sale date, but no later than 60 days after the expiration of the redemption period.

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Do the submission options for Claim filing change?

No. Submission options for claim filing remain the same. See our current Claim submission options.

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When should I submit Claim documents to MGIC?

Continue to submit Claim documents:

  • Ahead of Claim filing to expedite processing your Claim
  • At Claim filing
  • When we request documents

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Are the required Claim documents changing?

No. See Servicing Guide section 12.03, Claim Documentation Requirements, for required Claims documentation.

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What happens after a Claim is filed?

We will acknowledge receipt of your Claim. No later than 20 days after receipt, we will inform you of any additional Claim documentation or information we need to process your Claim. We will provide up to two additional reminder requests for missing information.

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Endorsements

Jurisdiction Form # Endorsements
All but MT 71-70341 Delegated Underwriting Program
All but PR 71-70344 Cooperative Properties
AK 71-70361 Alaska
AR 71-70351 Arbitration  Arkansas
FL 71-70365 Dispute Resolution and Governing Law — Florida
GA 71-70360 Georgia
IL 71-70364 Illinois
IN 71-70359 Governing Law — Indiana
KS 71-70342 Arbitration — Kansas
KY 71-70340 No Arbitration
ME 71-70355 Cancellation Provisions; Arbitration; Governing Law — Maine
MD 71-70374 Cancellation of Policy and State-Specific Limitations — Maryland
MO 71-70340 No Arbitration
71-70353 Late Claim Submission — Missouri
MT 71-70368 Delegated Underwriting Program — Montana
71-70371 No Arbitration; Governing Law; Interpretation — Montana
NH 71-70376 Governing Law — New Hampshire
NY 71-70356 Calculated Loss and Governing Law — New York
OK 71-70366 Definitions; Arbitration; Governing Law — Oklahoma
OR 71-70343 Arbitration — Oregon
71-70357 Governing Law — Oregon
PR 71-70375 Arbitration and Governing Law — Puerto Rico
SD 71-70352 Dispute Resolution and Governing Law — South Dakota
TN 71-70362 Governing Law — Tennessee
TX 71-70372 Texas
VA 71-70363 Arbitration and Governing Law — Virginia
WV 71-70367 Arbitration — West Virginia

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