December 31, 2014
Servicer Update—Changes to Calculations of HPA Refunds, Effective January 1, 2014

United Guaranty has changed the calculation method for refunds of unearned premium on single-premium contracts under the federal Homeowners Protection Act (HPA).

The change is effective January 1, 2015.

We offer three options for HPA refund calculations:

The refund calculation is applied on a certificate-by-certificate basis to reflect the unique attributes of each applicable loan and its specific coverage period down to 78% LTV.

We'll deploy a new automated refund calculator on the PC Unite® section of United Guaranty's MI Guide® early in 2015. We'll send you an update when the new calculator is available.

The new calculation method complies with requirements of North Carolina Code Section 58-10-130—Unearned Premium Reserve and has been approved by the N.C. Department of Insurance.

The updated calculation method uses the borrower's actual loan interest rate to provide a more precise loan amortization table.

If you have questions about this announcement, please contact your United Guaranty Account Representative.

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