Lenders Will Gain Certainty, Flexibility with New United Guaranty Master Policy in October
June 25 2014 - 11:56AM
Business Wire
Only United Guaranty’s master policy provides
enhanced clarity and an unambiguous written record with its
first-in-the-industry Policy Commitment Letter.
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, 2014.
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 already 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 Columbia.
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.
United GuarantyJo Fleischer, Director – Media RelationsO:
336-333-0433 | C: 336-609-3957
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