Changes after activation
Transfer Servicing
When you sell, transfer or assign servicing rights for a loan, notify MGIC within 30 days. The new servicer must be an approved MGIC Servicer.
MGIC accepts notification of a servicer change from either the loan’s seller or buyer. We will send an endorsement to the buyer confirming that we received and processed a request.
Key information to submit
- MGIC Certificate number
- Borrower last name
- New servicer’s loan number (if available)
- New servicer’s complete name and address
- Sale effective date
Reporting options
MGIC/Link Servicing - Select Transfer Servicing in the main menu.
Notes:
If your service bureau provides electronic notification to MGIC, do not send any additional documentation.
If an error or omission involving a servicing transfer results in premiums not being paid, and insurance coverage is terminated, MGIC may reinstate coverage if the new owner/servicer notifies MGIC within 60 days after expiration of the premium payment grace period.
Change loan numbers
Notify MGIC of loan number changes as soon as they occur.
Key information to submit
- MGIC Certificate number
- Borrower last name
- New loan number
Reporting options
MGIC/Link Servicing - Select Change Loan Numbers in the main menu
Assumptions
An assumption is a change in ownership of the property whereby the purchaser agrees to assume primary liability for payment of the seller’s existing mortgage. To execute an assumption:
- Obtain the purchaser’s signature on the existing note OR
- Execute an assumption agreement, an assumption and loan modification agreement, or a new note
MGIC recognizes two types of assumptions; both require prior approval from MGIC:
- Assumption with release, where the seller is released from liability
- Assumption without release, where the seller is still liable for the loan’s repayment
Reporting
Fax a completed Notice of Assumption form and the documentation listed below to MGIC Customer Service, 1.800.345.3291:
- Lender’s loan application
- Verification of employment
- Verification of deposit
- Sales contract
- Current credit report on the new borrower
Underwriting assumptions
MGIC will underwrite the assuming borrower based on the underwriting guidelines in effect at the time the assumption is submitted to MGIC. Generally, a new appraisal is not required, but we reserve the right to request one.
No due-on-sale clause
MGIC does not require a credit package for assumptions where you cannot exercise a due-on-sale clause. Please submit appropriate supporting documentation (listed above).
Title transfers
Title transfers are considered assumptions by MGIC and require prior approval.
Note: Notify MGIC of all title transfers. Upon approval, MGIC will, as necessary, issue an endorsement to reflect the change.
Modifications on performing loans
Loans that are current may be eligible for modification. Report completed modifications that meet MGIC guidelines. All modifications require MGIC’s prior approval.
MGIC loan modification guidelines
| Loan purpose | Modification of original loan:
|
| Coverage percentage | No change from existing coverage |
| Premium rate | No change to existing premium rate |
| Loan type |
|
| Mortgage payment history | Must be current |
| Property type | Cannot change from the original loan |
| Occupancy | Cannot change from the original loan |
| Property value | MGIC relies on property valuation from origination of existing loan |
| Documentation | See Reporting options below |
If a modification does not meet these guidelines, contact MGIC’s Customer Service Department at 1.800.424.6442 or customer_service@mgic.com.
Reporting options
Individual modifications
- MGIC/Link Servicing - Select Loan Modification in the main menu
- Submit completed MGIC Notice of Loan Modification online form
Multiple modifications - Submit completed Loan Modification Request Spreadsheet via:
- MGIC/Link Servicing - Select Loan Modification in the main menu
- Secure File Transfer - Select Loan Modifications as the File Recipient
Check the status of your modification requests via MGIC/Link Servicing.
Partial releases
A partial release is the release of a portion of the collateral securing the loan. MGIC’s prior approval is required for both a voluntary partial release and involuntary partial release.
Reporting
Fax the documentation listed below to MGIC Customer Service, 1.800.345.3291.
- Current mortgage payment history
- New appraisal reflecting the value of the property after release (not applicable for involuntary)
- Statement regarding the effect of the release on the marketability of the property
- Copy of the survey indicating which portion of the property is to be released
If the appraisal indicates no reduction in value arising from the partial release, MGIC may require that funds received from the sale of release be applied to the borrower’s principal balance. If the value is reduced, MGIC requires a reduction to the principal balance.
Note: While an involuntary partial release does not require a new appraisal, funds will be applied to reduce the principal balance. However, if a new appraisal is submitted indicating no reduction in value, such funds will not be applied to reduce the principal balance.
Coverage changes
If you need to change coverage for a loan, contact customer_service@mgic.com or 1.800.424.6442.
Changes made that increase exposure to MGIC will be evaluated under MGIC’s underwriting guidelines in effect at the time the change request occurs and are subject to MGIC’s approval.
If additional premium is due, you will receive a bill. The renewal rate will be based on the rate at the time the change becomes effective.
Other changes
Notify MGIC with administrative corrections and clerical errors in the borrower information, such as name and address. Contact customer_service@mgic.com or 1.800.424.6442 with these changes.