May 30, 2014
United Guaranty: Servicers Must Request HARP Mortgage Insurance Changes in Advance
Servicers making MI change requests typically receive a response from UGC within 24 hours.
United Guaranty strongly supports the federal Home Affordable Refinance Program (HARP). Since April 2009, United Guaranty has worked with lenders and servicers to help more than 81,500 families refinance their mortgages under HARP and HARP 2 (through February 2014).
Due to system requirements, United Guaranty must manually process all requests for changes to mortgage insurance (MI) for HARP loans—requiring servicers to submit requests for MI-related changes in advance. Send requests to UGC:loanmods using the Loan Modification Request Form on the forms page. Post-closing MI changes must also be submitted to UGC:loanmods.
Loans must be submitted to United Guaranty - and approved - prior to closing if they include changes to the following:
- Original insured loan terms.
- Coverage percentage (which must remain the same or decrease).
- Type of MI - change from annual to monthly, monthly to single. (A lender or servicer may not alter the type of MI when the original premium was single premium) and Bi-weekly Mortgages.
- Premium source—change from lender paid to borrower paid and vice versa.
Note: The Loan Modifications department typically responds to servicers' MI change requests within 24 hours.
UPDATES TO HARP CLOSING DATE WITH NO MI CHANGES? DO IT ONLINE!
United Guaranty’s MI Guide® provides servicers with an efficient, web-based alternative to faxing, emailing, or sending documents via EDI.
To simplify processes for servicers, United Guaranty opened MI Guide to the HARP program in August 2013 - only for servicers to provide HARP closing date information where the MI features do not change.
Note: When the type of MI or premium source is changed, the new premium rate is based on the rates in effect at the time of the original transaction to support the change. If the MI type, premium source, and coverage remain the same, the premium rate will remain the same. However, if the loan amount is updated the premium amount will change.
For more information on United Guaranty's HARP program, visit the HARP page or call 888.822.5584, Option 2.