|[June 25, 2014]
Lenders Will Gain Certainty, Flexibility with New United Guaranty Master Policy in October
GREENSBORO, N.C. --(Business Wire)--
When it becomes effective later this year, United Guaranty's new
first-lien mortgage insurance (MI) master policy will provide increased
certainty, flexibility, and transparency to mortgage lenders. All
mortgage insurance providers are required to initiate new master
policies, and the Federal Housing Finance Agency (FHFA) recently
announced that those new master policies will be effective October 1,
United Guaranty's new master policy is the only one in the MI industry
to include a Policy Commitment Letter-specific to each lender-that
clearly defines each party's roles and responsibilities.
The unique Policy Commitment Letter-along with new claims and appeals
guides-clearly spells out policies and practices governing underwriting,
claims, and appeals. All updates or changes automatically will be sent
to the lender and be merged into the Policy Commitment Letter to provide
an enduring written record. The Policy Commitment Letter also provides
additional flexibility to enable a lender and United Guaranty to agree
to include operational changes-and includes an easy-to-reference,
updated record of those agreements.
United Guaranty requires lenders to sign and execute the Policy
Commitment Letter to insure loans on or after the effective date for the
document, October 1, 2014.
"More than two thirds of our lenders have alreay executed the new
master policy with United Guaranty. They see the value of a master
policy that goes beyond satisfying minimum requirements to provide a
level of certainty and transparency that lenders and mortgage investors
prefer," said Donna DeMaio, president and CEO, United Guaranty. "We're
proud to be the only company in the industry to execute the Policy
Commitment Letter with lenders to clearly and unambiguously define the
terms of our shared business relationship."
When the new United Guaranty master policy becomes effective, the
existing one will be cancelled, and all new applications for insurance
submitted to United Guaranty will be governed by the new master policy
and Policy Commitment Letter, which do not affect loans that are insured
under the current master policies.
United Guaranty's master policy has been approved by Fannie Mae and
Freddie Mac and has been filed in all 50 states and the District of
United Guaranty representatives have been working closely with customers
for several months leading up to the master policy and Policy Commitment
Letter introduction. To assist customers with master policy or Policy
Commitment Letter questions, United Guaranty has created the www.ugcorp.com/masterpolicy
web page. Customers needing guidance may also call the Master Policy
Customer Service Center at 800.858.3550.
Educational webinars for lenders about United Guaranty's master policy
and commitment letter are scheduled for July 9, 2014 (beginning at 2:00
p.m. ET) and July 22, 2014 (11:00 a.m. ET). Lenders may register by
contacting their United Guaranty representative.
About United Guaranty1
United Guaranty Corporation and its subsidiaries provide certainty to
mortgage lenders through world-class underwriting, quality risk
solutions, and dynamic pricing available through Performance Premium,®
the industry's only MI pricing that is truly risk-based. Established in
Greensboro, North Carolina, in 1963, United Guaranty is a company of
American International Group, Inc. (NYSE:AIG).
1 United Guaranty is a marketing term for United Guaranty
Residential Insurance Company and United Guaranty Mortgage Indemnity
Company. United Guaranty is a registered mark. Coverage is available
through admitted company only.
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