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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.

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.

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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

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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 requirements 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.

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Modifications on performing loans

Loans that are current may be eligible for modification. Report completed modifications that meet MGIC requirements. All modifications require MGIC’s prior approval. If we approve the modification, we will notify you of any premium changes.

MGIC loan modification requirements

Loan purpose Modification of original loan:
  • Maximum increase from current unpaid principal balance may not exceed the lesser of 2% or $2,500
  • Increase in loan balance is limited to reasonable and customary closing costs/prepaids
  • No cash back to the borrower
  • Re-subordination of existing secondary financing allowed
Coverage percentage No change from existing coverage
Premium rate No change to existing premium rate
Loan type
  • Fixed-rate
  • Fully amortizing ARM with fixed payments for the first 5 years
  • Interest-only period: minimum 10 years for fixed-rate
  • Ineligible: potential negative amortization, scheduled negative amortization, temporary buydown, GPM
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 requirements, contact MGIC’s Customer Service Department at 1.800.424.6442 or customer_service@mgic.com.

Reporting options

Individual modifications

Multiple modifications – Submit completed Loan Modification Request Spreadsheet via:

Check the status of your modification requests via MGIC/Link Servicing.

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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.

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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 according to MGIC underwriting requirements 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.

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Other changes

Contact customer_service@mgic.com or 1.800.424.6442 to request changes due to administrative corrections and clerical errors in any borrower's name or information and/or in the subject property address. (If you notify us via e-mail, state Request for Changes in the subject line.)

Include with your request:

  • Reason for the change
  • Requestor's name
  • Company
  • Phone or e-mail address
  • Supporting documentation, except for the following name change requests:
    • Changing a borrower's LAST NAME ONLY, due to marriage or divorce
    • Removing a mortgagor's name, due to death (but any other mortgagors remain on the policy)
    • Removing a borrower's name due to death, and the property is being transferred to "The Estate Of"

    • Note: Even though we do not require you to submit supporting documentation in these specific instances, you are responsible for the accuracy and validity of the request, and you must be able to supply a copy of supporting documents upon our request.

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