MGIC Loan Servicing Guide

Monthly Premium

Our monthly premium plan provides a month-to-month coverage term. No premium is due at closing. Billing begins the first month after closing, and payment is due the following month. The billing process continues until the insurance is cancelled.

Choice Monthly and Split Premium

Our Choice Monthly and split premium plans provide a month-to-month coverage term. Part of the premium is paid up front to reduce the monthly premium. The upfront premium can be financed into the loan amount or paid at closing. We bill for the monthly portion of the premium beginning the first full month after closing and continue until the insurance is cancelled.

Single Premium

Our single premium plan provides coverage with a one-time premium payment. The premium is paid at closing.

Our borrower-paid single premium plans provide coverage for a limited time based on the loan’s scheduled amortization. Coverage expires automatically when the unpaid principal balance of the loan, based on the original amortization schedule, reaches 78% of the Original Value, regardless of actual payments.

Annual Premium

Our annual premium plan provides coverage for a term of one year. The first-year premium is paid at closing. The renewal premium is due on the Certificate anniversary date. The billing process continues annually until the insurance is cancelled.

Premium due to activate coverage is listed on the Commitment/Certificate. For information on premium payment requirements, refer to our Underwriting Guide.

We provide monthly, Choice Monthly, split and annual premium plan renewal bills.

Premium billing includes:

• Insurance premiums for current and unpaid coverage periods
• Applicable premium taxes or assessments required by any state or local jurisdiction
  • See Taxes and assessments

The entire renewal premium is due on the premium due date specified on the bill. Do not alter our calculated premiums, and pay them as indicated on the bill. We will cancel coverage on a Certificate if we do not receive premium within the 60-day grace period, effective the last day of the renewal term for which premium was paid.

For monthly, Choice Monthly, split and annual premium plans, the premium amount due is based on one of the following renewal options:

Declining Renewal

Declining renewal premiums are adjusted annually based on the current mortgage balance. Each year on the Certificate anniversary month, we will send you a bill that requires you to report the current mortgage balance and calculate the current premium due as follows:

• Multiply the mortgage balance by the premium rate (for monthly premiums, divide the results by 12)
• If applicable, multiply the newly calculated premium by the tax/assessment rate

Constant Renewal

Constant renewal premiums are based on the original amount Insured and remain the same for the first 10 years. After 10 years, the premium due may decrease to a lower renewal rate for the remaining life of the insurance.

We issue renewal bills based on a billing cycle of your choice:

Cycles 1-4

• We issue bills the first, second, third and fourth full weekends of the month, respectively
• Bills include coverage dates for the current month’s monthly premiums due (and any unpaid coverage periods) and next month’s annual premiums due

For example, if the current month is January, the bill is for January monthly premiums due and February annual premiums due.

Cycle 5

• We issue bills the first full weekend of the month
• Bills include billing for the previous month’s monthly premiums due (and any unpaid coverage periods) and the current month’s annual premiums due

For example, if the current month is January, the bill is for December monthly premiums due and January annual premiums due.

See our Billing cycles calendar for specific due dates.

Email billing_inquiry@mgic.com to request the billing cycle that best meets your needs.

Automated Renewal Billing (ARB)

Receive your bill electronically with no minimum portfolio size.

Email integration_services@mgic.com for more information about the vendors and software providers we support.

MGIC/Link Servicing Premium Billing

To receive notification to access your bill via MGIC/Link Servicing, our secure servicing system, email mgiclink_billing@mgic.com .

Paper Billing

We will mail you a paper bill if you do not select an electronic billing format.

Remit payments via:

• Check — Mail to MGIC

  Standard Mail Delivery	Overnight Mail Delivery (FedEx, UPS, etc.)
  MGIC Box 78461 Milwaukee, WI 53278-8461	MGIC Box 78461 C/O US Bank Wholesale Lockbox MK-WI-TCWL 777 E. Wisconsin Avenue Milwaukee, WI 53202

• ACH or wire — To request more information, email premium_remit@mgic.com

If a loan Defaults, coverage remains in force and we continue to bill renewal premiums.

If you continue to pay premiums due, any premium paid for the period following the Default that results in a Claim will be refunded at the time of the Insurance Benefit payment.

If you do not continue to pay renewal premiums, and you report the Default to us as cured, we will provide a bill indicating all unpaid premium due. If we do not receive all unpaid premium by the due date indicated on the bill, we will cancel coverage on the Certificate, effective the last day of the renewal term for which premium was paid.

Notify us to cancel or terminate coverage pursuant to applicable law or the Beneficiary’s established guidelines. We do not monitor mortgage insurance cancellation requirements and are not obligated to cancel coverage unless you notify us.

Submission Options

• MGIC/Link Servicing — Select Cancel Coverage in the main menu
• Submit Request for Cancellation of Insurance form or required information (see below) via:
  • Secure File Transfer (SFT) — Select Cancellations
  • Secure email to cancel_requests@mgic.com
  • Fax 1-888-818-0241
• For multiple cancellations, Electronic Data Interface (EDI) format is also available. Contact integration_services@mgic.com for more information on EDI technology.

Information Required

In lieu of a Request for Cancellation of Insurance form, provide the following information via SFT, email or fax:

• MGIC Certificate number
• Servicer’s loan number
• Borrower’s name
• Subject Property address
• Reason for cancellation
• Cancellation effective date
• Payee’s name and address if a refund is due

Premiums Due After Cancellation

Since monthly premiums are generally paid in arrears (unlike annual or single premiums, which are paid in advance), it is possible that premium will be due at the time of cancellation. If so, we will send you a bill indicating the amount due.

Noncancellable Coverage

Insurance under certain Master Policies may not be cancelled unless the loan is paid in full, or has amortized or been paid down to a specified loan-to-value ratio. Email cancel_requests@mgic.com with questions regarding cancellation on a loan with noncancellable coverage.

The Homeowners Protection Act of 1998 (HPA) covers single-family primary residence loans that closed on or after July 29, 1999. HPA provides for Borrower-requested cancellation and automatic termination. It is your responsibility to notify us when coverage terminates under HPA automatically or due to a Borrower-requested cancellation.

Investors establish the criteria for cancelling mortgage insurance for loans not covered by HPA. This includes second homes, investment properties and where the Property’s current value is used.

Fannie Mae and Freddie Mac requirements are provided in their guides and are subject to change. Refer to the agencies’ guides for the most current mortgage insurance cancellation information. Check other investors’ mortgage insurance cancellation requirements.

We offer refundable and nonrefundable premium plans (1.01). Premium refundability is specified on the loan’s insurance Commitment/Certificate.

Refundable Premium Plans

We will not provide a refund for any period more than 45 days prior to our receipt of the required mortgage insurance cancellation notice.

We will only refund annual and single premiums of less than $5 upon request.

Premium Refunds After Cancellation Delivery Options

• Direct deposit — We will electronically transfer your refund to a designated account within as few as 2 business days of processing your refund request. Go to mgic.com/speedyrefund to authorize direct deposit. Once we receive your authorization, we will:
  • Work with you to set up direct deposit for your designated branches or offices
  • Test to ensure the successful transfer of future funds
  • Email a daily direct deposit reconciliation report to your designated email address the day before funds are deposited to your account
• For more information, contact suspense_premium_inquiry@mgic.com
• USPS mail — We will process and create a separate refund check for each refund and mail individual checks to you via USPS mail

Non-refundable Premium Plans

Our Borrower-paid non-refundable premium plans may be partially refundable if mortgage insurance is terminated under the Homeowners Protection Act. These refunds are based on our HPA refund schedules . Otherwise, premium under these plans is nonrefundable.

We will consider requests to reinstate cancelled coverage.

Information Required

Email or fax the following information:

• MGIC Certificate number
• Borrower’s last name
• Subject Property address
• 12-month mortgage payment history
• Reason for reinstatement and supporting documentation
• Requestor’s name and contact information

Submission Options

• Secure email to customer_service@mgic.com with the subject line “Reinstatement request”
• Fax 1-800-345-3291

We will contact you if we require additional information. After review, we will approve or deny your request.

If we approve the reinstatement request, we may generate a reinstatement bill. If we receive the premium payments by the premium due date indicated on the reinstatement bill, we will reinstate coverage retroactively to the termination effective date.

If an error or omission involving a servicing transfer results in unpaid premium and insurance coverage is terminated, we will reinstate coverage on the affected loans if we receive the following within 60 days after expiration of the premium payment grace period:

• Notification of the servicing transfer
• Payment of the entire renewal premium for all affected loans

Information Required

Email or fax the following information:

• MGIC Certificate number
• Borrower’s name
• Subject Property address
• New Servicer’s name and contact information
• Requestor’s name and contact information
• Effective date of servicing transfer

Submission Options

• Secure email to customer_service@mgic.com with the subject line “Reinstatement request”
• Fax 1-800-345-3291

Partial releases that don’t meet delegated authority guidelines require prior approval before implementation.

Documentation Requirements

Submit the Notice of Partial Release form and include the following:

• Explanation of why the release is being requested
• The amount of the compensation being paid in exchange for the release, if applicable
• Most recent 12-month mortgage payment history
• Survey outlining complete parcel, what is being released, and proximity to the improvements
• Copy of the original note
• Copy of the complete origination appraisal, including all addenda
• Copy of the pending sales contract, including all pages with the addendum, if applicable
• New appraisal, including the following:
  • Value of the Property BEFORE release
  • Value of the Property AFTER release
  • Statement from appraiser addressing the impact of the partial release on Property marketability after the release
  • All addenda, attachments and photographs

The monthly servicing report provides the status of all loans (both current and delinquent loans). If requested, submit the report on or before the 25th day of each month for the prior month’s activity. For more information, see Servicing Report .

If you become aware of a Significant Defect, Single Loan Fraud or Pattern Activity with respect to a loan, you are required to notify us within 30 days of discovering such information.

If you receive a repurchase request from a GSE or Investor, notification is required within 30 days of the request and should include all related documents.

Submission

Submit required documentation via secure email to lenderqcdefect@mgic.com .

We require you to maintain the mortgage payment record, including payment history, in a legible and retrievable format. You must employ industry-standard controls that document the maintenance and quality of the mortgage payment record. You must also provide documentation upon request.

For a loan in which a Borrower is enrolled in a state Address Confidentiality Program, the servicer must contact MGIC Customer Service, 1-800-424-6442 or customer_service@mgic.com , to provide a legal substitute address.

You may complete a modification of a current loan without prior MGIC approval when all of the following eligibility requirements are met:

• The purpose of the loan modification is to reduce the Borrower’s interest rate or to reamortize (“recast”) the loan following a principal reduction payment
• The modification doesn’t result in:
  • An increase to the loan’s original term
  • An increase to the Borrower’s monthly principal and interest payment
  • An increase to the unpaid principal balance

When performing a loan modification and meeting these conditions is completed, you must notify MGIC of the updated terms outlined in 9.03.

For delinquent loans, offer a loan modification when the Borrowers have the desire and financial ability to continue making mortgage payments after the loan is modified.

You have delegated authority to implement the terms of GSE-sponsored Loan Modification programs. Follow the options and requirements of the GSE when implementing these delegated programs.

For non-GSE loans, refer to the Loan capitalization limits based on Policy Type.

Loan Capitalization Limitation Guidelines by Policy Type

*The loan capitalization limitation includes the modified amortized principal, plus forgiveness or forbearance amounts

If we do not offer delegated authority for a particular modification program, we will approve your delinquent loan modification request either as submitted or with an approval condition, provided we receive all required information at the time you report the modification. Modified loans with capitalization may include an approval condition limiting the amount of the capitalized unpaid principal balance (UPB) that we would allow on a future Claim if the Borrower Defaults on the loan again.

Special or proprietary loan modification programs require MGIC’s prior approval. You may submit these requests to your MGIC Account Representative.

We require you to conduct diligent Borrower contact and collection of the mortgage debt in compliance with GSE published guidelines.

We also require you to offer Workouts such as repayment plans (10.04), forbearance plans (10.03) or loan modifications (9) to Borrowers who have the ability to cure a delinquency in compliance with industry standards and applicable law.

You may postpone a scheduled foreclosure sale in order to pursue a forbearance plan, repayment plan, loan modification or short sale. See Section 10.06 for Disaster Relief Guidelines.

Foreclosure sale postponements for any other reason require our prior approval.

Information Required

• Date of foreclosure initiation
• Timeline needed for postponement
• Information detailing the reason for postponing the foreclosure sale

Submission Options

• MGIC/Link Servicing — Select Other Workout Types in the main menu
• Secure File Transfer (SFT) — Select Claims Query
• Secure email to claimsquery@mgic.com

We will review and respond to your request within 10 business days with either an approval or denial. If we require additional documentation to evaluate the request, we will deny the request and indicate the information we still need. Submit a new request with the required documentation.

See section 10.06 for Disaster Relief Guidelines.

Short sales or deeds in lieu may be appropriate when all home retention options have been exhausted, and the Borrowers are unable or unwilling to continue making their full mortgage payments. We prefer a short sale under these circumstances, but recognize that there are situations in which a deed in lieu of foreclosure may be an appropriate Workout option.

On Fannie Mae or Freddie Mac loans, follow investor guidelines. We have delegated approval authority to Fannie Mae and Freddie Mac for short sale and deed in lieu Workouts.

Foreclosure Postponement

When a natural disaster is the reason underlying a Default or is preventing a Borrower from curing an existing Default, Servicers may postpone foreclosure proceedings up to 90 days.

Forbearance

Servicers are authorized to offer impacted Borrowers a forbearance plan term of up to 12 months without MGIC’s approval. After a forbearance plan is granted, the servicer must continue to work with the Borrower and evaluate other potential home retention and Workout options.

Reporting Defaults During a Forbearance Period

Continue to report loans in Default during a forbearance period. Refer to section 8.02.

Through the Default Workout process, Servicers may work with Borrowers to implement a payment deferral plan. In a payment deferral plan, the loan is brought current and the sum of the past due amounts (including principal, interest, escrow advances and fees) becomes a separate, non-interest-bearing balance that is due and payable in its entirety at loan maturity or payoff, whichever occurs first. All other terms of the loan remain unchanged, and the Borrower resumes their regular payment.

If you cannot resolve a Default through a Workout, initiate foreclosure by filing a complaint in the appropriate court or publishing a notice of sale, or by such process as required by applicable law, by the later of:

• 30 days after the date that the loan remains in Default for 6 consecutive months, or
• 60 days after the earliest date after such 6-month period that Appropriate Proceedings may be commenced under applicable law

In the event of Chapter 7 or Chapter 13 bankruptcies, initiate foreclosure within 60 days after the first of the following occurs:

• The automatic stay is lifted
• The bankruptcy case is dismissed
• The Borrowers are discharged

For a Chapter 13 bankruptcy, file a petition for relief from the bankruptcy stay within 60 days after the Borrower has missed 2 consecutive payments under the bankruptcy plan.

Report a Bankruptcy

If a bankruptcy is filed on a delinquent loan, report the bankruptcy to us through the monthly Default reporting process. For reporting options, see 8.02.

File the appropriate action(s) preserving our right to pursue a deficiency in conformity with state foreclosure statutes. We may pursue deficiency judgment in the following states:

AR, CO, CT¹, DC, DE, FL, HI, ID, IL, IN, KY, LA, MA, MD, ME, MI, MO, MS, NC, NH, NM, NV, OH, OK, RI, SC², TN, TX, UT, VA, WV

If we intend to pursue a deficiency judgment, we may request additional documentation upon Claim submission.

If you would like to request a deficiency waiver, send a secure email to claimsquery@mgic.com. Include the following information with your request:

• MGIC Certificate number
• Borrower’s name
• Property address
• Total debt
• Value (BPO or appraisal) no more than 120 days from approval
• Reason for the request
• Requestor’s name and contact information

¹In a strict foreclosure action, we require you to file a motion for deficiency within 30 days of title vesting.

²The deficiency should be demanded in the initial pleadings.

Diligently pursue completion of foreclosure in compliance with the state time frames described in Fannie Mae’s exhibit on their website or as we direct. (Page 2 of the exhibit does not apply to our process for evaluating allowable days on a Claim. See below for a description of our process.)

These foreclosure state time frames specify the number of days we generally cover between the due date of the last paid installment (LPI) and foreclosure sale date. These state time frames are based on the preferred method of foreclosure and apply to Claims on loans where a foreclosure sale has been completed. For loans approved by a GSE for an alternate foreclosure method, include a copy of the GSE approval with your Claim.

If the number of days claimed exceeds the foreclosure state time frame, additional time may be covered if you can demonstrate that the delay occurred despite diligent servicing and loss mitigation activities or is attributable to events outside of your control. Please include with your Claim a chronology of events demonstrating efforts pertaining to collection, foreclosure, loss mitigation, bankruptcy, loan repurchase or indemnification demands and other legal activities, as applicable (12.03). We will review the information to determine if additional days claimed will be covered. For loans insured under Master Policy 71-43342 (10/14) and Master Policy 71-70384 (03/20), we will not cover more than 36 months of unpaid accumulated interest and Advances.

The submission of a Claim is a representation that the Claim and any supporting documentation submitted with the Claim is complete and accurate and that all conditions precedent to Claim submission under the applicable Master Policy have been met.

When you submit a Claim, provide us with the following:

• A properly completed Claim (12.02) and the Core Claim Documents, as identified in 12.03

Note: When submitting a Claim, you acknowledge state fraud warnings (see mgic.com/warnings ).

Either you or the GSE Beneficiary may file primary coverage Claims, or pool or second layer coverage Claims.

Primary Coverage Claim Time Frame Requirements

For Claims on Loans Insured Under Master Policy 71-70384 (03/20)

File a Claim within 60 days of the first to occur:

• Completion of the foreclosure sale of the Property, regardless of whether certification, confirmation or ratification of the sale has occurred;
• Conveyance of title to the Property by execution of a deed in lieu of foreclosure; or
• Closing of a Third-Party Sale by the Borrower

For Claims on Loans Insured Under All Other Policies:

File a Claim within 60 days of the earlier of:

• Transfer of Borrower’s title through foreclosure or deed in lieu (do not wait for executed deed to be recorded or the sale closing of the REO Property)
• Completion of a Property sale (Borrower-titled short sale)

In states where a redemption, confirmation or ratification 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, confirmation or ratification period.

Pool Coverage Claim Time Frame Requirements

File within 60 days after completion of the sale of the Property.

Submission Options

• Electronic Data Interface (EDI) X-12
  • For questions or more information about EDI technology, email integration_services@mgic.com
• MGIC/Link Servicing — Select File a Claim in the main menu
• Submit Claim form via:
  • Secure File Transfer (SFT) — Select Claims Query
  • Secure email to claimsquery@mgic.com
  • Fax 1-800-353-8781

Servicing File (Required on All Claims)

Provide all Servicing File documents from activity beginning on the date of Default through the Claim filing date (unless otherwise noted below) when you file the initial Claim. Servicing File documentation includes the following:

• Loan payment history from origination date to Claim filing date, including running principal, escrow and suspense balances
• Servicing system notes, including servicing, collection, loss mitigation, bankruptcy, legal and foreclosure activity
• ARM interest rate index, respective principal and interest payment changes, and effective date(s)
• Terms of any completed Workouts including including forbearance agreements, repayment plans, deeds in lieu and loan modifications, short sales and payment deferrals
• Bankruptcy information including bankruptcy type, filing date, motion for relief filing date and date motion granted
• A chronology of events demonstrating efforts pertaining to collection, foreclosure, loss mitigation, bankruptcy, loan repurchase or indemnification demands and other legal activities, as applicable
• For GSE pool or second layer coverage, primary Claim form and Explanation of Benefits statement as applicable
• All communications to and from the Borrower
• Completed Property valuations obtained as part of the foreclosure process
• Foreclosure bidding instructions and proof of proceeds (in the event of an outbid)

Title Transfer Documentation (Required on All Claims)

Provide documentation demonstrating evidence of title transfer when you file the initial Claim. Based on the type of title transfer, documentation includes the following:

Loan Origination and Closing File (Required Only if Requested)

You may be asked to provide applicable Loan Origination and Closing File documents. These documents can include, but are not limited to:

• 1003/65 Original Loan Application
• 1008/1077 Uniform Underwriting and Transmittal Summary
• Final AUS Findings/Feedback Report
• Appraisal and other Property valuation information, including all addenda, attachments, schedules, photographs and other information included by the appraiser
• Credit report and all other credit documentation
• Other credit and liabilities, such as child support documentation and divorce decree/separation information
• Bankruptcy evidence of discharge/completion date
• Evidence of debt satisfaction
• Income and employment verification for all Borrowers, such as Verification of Employment (VOE), W-2s/IRS Wage and Income Transcripts, pay stubs, tax returns with all schedules, tax transcripts, evidence of receipt of rental income and lease agreements, and child support documentation
• Asset verification for all Borrowers, such as Verification of Deposit (VOD); bank, retirement, money market and other account statements verified for assets to close and meet reserve requirements; source of funds letter; proof of sale of previous residence (HUD-1 Settlement Statement or Closing Disclosure); and gift letter
• Sales contract or equivalent with all addenda
• Letter of explanation from Borrower or lender
• Final HUD-1 Settlement Statement or Closing Disclosure
• Mortgage/Deed of Trust
• Note and riders
• Title insurance commitment
• Homeowners insurance declaration page

Submission Options

Submit required documents via:

• MGIC/Link Servicing — Select Upload Claim Documents
• Secure File Transfer (SFT) — Select Claims Documents
• Secure email to claims_documents@mgic.com

Claim perfection occurs when we have received all required information and documentation and gained Property access if requested. Claim perfection timeline requirements depend on the applicable Master Policy.

We generally provide notifications as follows:

• Within 20 days of filing your Claim, we will notify you of additional Claim requirements including any documentation we have not received
• If after 30 days from our initial notification we do not receive the required documentation or the documentation is insufficient, we will provide a follow-up notification listing any outstanding items
• If after 30 days from our second notification we do not receive the required documentation or the documentation is insufficient, we will provide a final notification
• If the required documentation is not provided by the time frame indicated in the applicable Master Policy, we may deny the Claim

Property Access

We will notify you if we require Property access. If we have not obtained access by the time of Claim settlement, the Insurance Benefit may be reduced.

The Insurance Benefit is based on the Claim Amount. This section includes a list of the types of items that may be covered on a Claim, as well as types of items that will not be covered. The items that can be included on a Claim include the unpaid principal balance, accrued and unpaid interest at the applicable note rate and Advances associated with servicing the loan after the Default resulting in the Claim. Generally, interest and Advances are includable in the Claim Amount for the period of time from the date of Default through the date that the Claim is filed.

There are 3 types of alterations to a Claim that could result in a revised Insurance Benefit:

• Adjustment of amounts claimed for expenses not covered under the Master Policy (12.05.03)
• Correction of an amount claimed (either an addition or reduction)
• Curtailment of interest and related Advances (12.05.01)

The Insurance Benefit is payable to you, or to Fannie Mae or Freddie Mac if either is the Beneficiary and has elected to receive the Insurance Benefit.

The Insurance Benefit in settlement of the Claim will be one of the following:

Percentage Option

The Insurance Benefit is the Claim Amount, multiplied by the percentage of coverage.

Third-Party Sale Option

The Insurance Benefit is the Claim Amount less Net Proceeds, resulting in an Insurance Benefit less than the Percentage Option.

Acquisition Option

The Insurance Benefit is the Claim Amount.

Anticipated Loss Option

The Insurance Benefit is the Claim Amount less the Estimated Net Proceeds, assuming the Property is in the same condition as it was on the Commitment date (Reasonable Wear and Tear excepted). For loans insured under policies #71-43342 (10/14) and #71-70384 (03/20), this option is automatically applied when one or more of the conditions listed below exists. For loans insured under prior Master Policies, we may contact you or the investor to offer an anticipated loss option settlement amount if one or more of the conditions below apply:

• We are not granted Property access, or
• We do not receive good and marketable title that all filed liens have been released or satisfied and title search results, including the bring-down title search through the anticipated date of recording the deed , or
• We are unable to assess estimated restoration costs related to the Physical Damage or nonresidential Property exclusions, or
• When an approved Third-Party Sale does not close within 210 days of Claim filing (applies only to loan insured under policy #71-70384 (03/20)

Explanation of Benefits (EOB)

Your explanation of benefits (EOB) statement includes an explanation of any Insurance Benefit paid and any adjustments to the Claim Amount.

Regardless of how you file a Claim, access its EOB via MGIC/Link Servicing (17.01). If you use Electronic Funds Transfer (EFT), you can view and print the EOB from the MGIC/Link Servicing Reports menu.

Guidelines for Claims on loans insured under Master Policy 71-70384 (03/20)

You may file a supplemental Claim to request additional allowable Advances that were not included in the initial Claim. You must have incurred the allowable Advances prior to the date the initial Claim was submitted, and paid them prior to filing the supplemental Claim.

We must receive supporting documentation for all additional expenses pertaining to your filed supplemental Claim, such as invoices reflecting the expense(s).

For consideration, we must receive your supplemental Claim for all allowable Advances, other than the exception noted below, no later than 90 days after the date of the EOB for the initial Claim.

Exception: We will accept a one-time supplemental Claim beyond the 90-day time frame for trailing fees and costs associated with recording the foreclosure deed when a statutory redemption, confirmation or ratification period delays the recording of the foreclosure deed beyond the standard 90-day time frame.

The following criteria applies:

• For consideration, we must receive your trailing supplemental Claim within 30 days of the final invoice for recording
• Include invoices supporting the recording fees and costs
• Attorney fees remain subject to policy limitations (9.04)

Guidelines for Claims on loans insured under all other policies

You may file a supplemental Claim to request additional allowable Advances that were not included in the initial Claim. You must have incurred the allowable Advances prior to the date the initial Claim was submitted, and paid them prior to filing the supplemental Claim.

We must receive supporting documentation for all additional expenses pertaining to your filed supplemental Claim, such as invoices reflecting the expense(s). For consideration, we must receive your supplemental Claim for all allowable Advances, other than the exception noted below, no later than 90 days after the date of the EOB for the initial Claim.

Guidelines

After you complete foreclosure, list the Property for sale as soon as possible and continue to market it through Claim resolution. Our approval is not required on the listing. All offers acceptable by the Beneficiary require our approval until the Claim is resolved.

We will provide a response within 10 business days of receiving your request indicating if we approve the offer and if the offer will result in our election of the Third-Party Sale Option (12.06).

If the sale terms change and we indicated we will elect the Third-Party Sale Option (12.06), submit the revisions for our approval.

After closing, submit the Final HUD-1 Settlement Statement regardless of Claim filing status.

Information Required

• Value estimate provided after an interior inspection (BPO, appraisal or other MGIC- approved value), no more than 120 days old
• Itemized costs of any repairs made
• Sale terms including offer amount, closing date, estimated closing costs for buyer and seller, and any other miscellaneous terms of sale

Submission

Submit required information via secure email to reo_marketing@mgic.com .

If we elect the Acquisition Option (12.06), we will notify you of our initial decision and the need to submit required documentation.

Required documentation may typically include the following:

• A recordable warranty deed (e.g., Grant Deed for California Property, Covenant Deed for Michigan Property) containing the normal and customary warranties and covenants in the usual and customary form (Quit Claim Deeds are not an acceptable form of conveyance)
• All appropriate state and county transfer forms (executed, if required)
• Evidence of good and marketable title as referenced in the appropriate Master Policy that all filed liens have been released or satisfied and title search results, including the bring-down title search through the anticipated date of recording the deed
• Evidence that all Property taxes are paid current as of the Insurance Benefit payment date
• If the Property is subject to a homeowners association/condo assessment, a written statement from the association showing that:
  • All dues, assessments, penalties and interest are paid current, and
  • All filed liens have been released or satisfied

Submission

Submit required documentation via secure email to reo_marketing@mgic.com .

Guidelines

We oversee the marketing activity of all REO properties with pool or second layer coverage. Our approval is required throughout this process.

Property Listing Approval

Submit the following for listing approval within 60 days after the title transfers through foreclosure or deed in lieu:

• 2 value estimates after an interior inspection (BPO, appraisal, or other MGIC-approved value), one obtained from the listing agent and one from an independent source
  • For your convenience, you may obtain the second value estimate from MGIC; email reo_marketing@mgic.com for more information
  • Value estimates should include color photos and full repair addenda with brokers’ itemized estimates of all repairs
• List price for marketing of the Property as-is or in a repaired state
• Itemized general contractor’s bid for all repairs needed; provide a second bid for any repairs totaling more than $10,000
• Appraisal from the loan Origination File
• Contact name and phone number for an individual with access to the Property
• Eviction proceedings start and end date, tenant or Borrower occupancy, and any other eviction information if applicable

Upon review, we will respond with listing instructions, including a strategy for marketing the Property in as-is or repaired condition.

Documentation Required During the Listing Period if the Property is not Under a Sales Contract

• Provide the status of marketing activity and any recommendations on marketing strategy and listing price adjustments every 30 days
• Provide a value estimate after an interior inspection (BPO, appraisal or other MGIC- approved value) every 90 days

Upon review of the documentation, we will contact you regarding any listing approval changes.

Property Offer Approval

Property offers acceptable by the Beneficiary must be submitted for our approval.

Submit the sale terms including the offer amount, estimated closing date, estimated closing costs for buyer and seller including buyer closing costs being paid as a concession, estimated Net Proceeds, and any other miscellaneous terms of the sale.

We will provide a response within 10 business days of receiving your request indicating if we approve the offer.

If the sale terms change or the closing date is extended by more than 15 business days, submit these revisions for our approval.

After closing, submit the Final HUD-1 settlement statement regardless of Claim filing status.

Submission

Submit required documentation via secure email to reo_marketing@mgic.com .

File a Claim using MGIC/Link Servicing’s secure, web-based form. If you’re unable to use MGIC/Link Servicing, complete the editable PDF version of the Claim form.

The following illustrates examples of the 4 possible settlement options (12.06) using a Claim Amount of $200,000 , a Property Value of $180,000 and 30% coverage.

MGIC/Link Servicing is a secure, automated support hub for all your servicing needs — from activation of coverage to Claim resolution. MGIC/Link Servicing allows you to view loan status and report/file applicable information.

To Sign Up

Register for your login ID and password at mgic.com/signup.

Report Servicing Transfers

Select Transfer Servicing in the main menu.

Report Individual Loan Number Changes

Select Change Loan Numbers in the main menu.

Report Cancellation of Mortgage Insurance

Select Cancel Coverage in the main menu.

Report Loans in Default and Default Status

Select File/Update a Default in the main menu.

Submit Premium Billing

Select Premium Billing from the navigation bar to access your bill. You will only be able to access premium bills generated after you select this billing option. For each premium bill, review and modify individual loan information as needed prior to submitting the bill.

Submit Loan Modifications

Select Loan Modification in the main menu to:

• Request approval for individual or multiple loan modifications (9)
• Upload documentation for loan modifications, including the Loan Modification submission spreadsheet

Submit Loan Workouts

Select Short Sale in the main menu to:

• Request approval and submit documentation for short sales that fall outside of your delegated authority (10.05)
• Provide additional information on short sale requests pending approval
• Request an extension approval

Select Deed in Lieu in the main menu to submit requests for approval and supporting documentation for a deed in lieu that falls outside of your delegated authority (10.05).

Select Other Workout Types in the main menu to submit requests for approval for the following Workout types:

• Foreclosure sale postponement (10.02)
• Forbearance (10.03)
• Repayment plans (10.04)
• Other unlisted programs that require our review and approval

File Individual Claims

Select File a Claim in the main menu and enter the Certificate number. The online Claim form will open prefilled with the Servicer, mortgage insurance, Borrower and Property location information. The form also calculates totals for you. You have the option to save your work and finish at your convenience. Once completed, submit the Claim.

Uploading Documentation

Select Claim Documents in the main menu to upload documentation:

• Prior to filing a Claim
• Immediately after filing a Claim
• Upon our request for missing or additional documentation

After we have notified you that we have registered your Claim, use the Claim Documents main menu option to:

• Determine specific missing documents you need to submit on a per-Claim basis
• Create reports that show all of your Claims and any outstanding documents requested

Check Claim Status/Explanation of Benefits (EOB)

Regardless of how you file a Claim, you can check Claim status securely and easily via MGIC/Link Servicing. Once a Claim has been settled, you can download an EOB.

• In the MGIC/Link Servicing main menu, select Policy Inquiries
• Provide the Certificate number or Servicer Number and select Claim as your inquiry type

View Electronic Funds Transfer (EFT) Claim Payment Details

Select Reports in the main menu to view payment details on the same day funds are transferred, and to access:

• EFT reconciliation reports with daily totals of Claim funds transferred
• Individual Claim payments
• EOB statements for each Claim

All data transmissions are encrypted using the strongest available industry standards, Secured Socket Layer (SSL). Send and receive any file type, such as PDF, XLS and DOC.

To Sign Up

Register for your login ID and password at mgic.com/signup.

Report loans in Default and their status (8.02) electronically via ADR.

How ADR Works

After the 15th of every month, your loan database is scanned to gather information about delinquent MGIC-insured loans. This information is loaded into an electronic file that you deliver to us.

To Get Started

Step 1: Portfolio review

We recommend performing a portfolio review on all of your MGIC-insured loans. This review ensures that your files — and ours — are accurate. To assist you, we can provide a file or listing of your current MGIC-insured loans.

Step 2: Data verification

Once the review is complete and any discrepancies are resolved, automated default reporting begins. To make sure your delinquent loans are accurately transmitted, we typically verify your data for the first 2 file submissions. During this time, continue to report your delinquencies manually.

To set up ADR, contact us at integration_services@mgic.com.

EFT service expedites your Claim payments by allowing us to electronically transfer funds into your account upon completion of the Claim. We provide an EFT reconciliation report via MGIC/Link Servicing listing all loans receiving payment 1 business day prior to deposit.

To Get Started

Complete and fax an Authorization for Electronic Receipt of Payment form to our Cash Management Department, (414) 347-6354.

Upon receipt of the form, we will:

• Test to ensure the successful transfer of future funds
• Work with you to set up EFT service for your designated branches or offices
• Notify you of the date EFT Claim payments will be activated
• Provide instructions for accessing payment detail via MGIC/Link Servicing

We offer secure, electronic document submission through Electronic Data Interface (EDI) technology. For more information, contact integration_services@mgic.com .