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:
- Have United Guaranty calculate a refund for you by calling 888.U.CALL.UG (888.822.5584), Option 1, with the loan details (date of the loan, the original loan amount, interest rate, term of loan, and LTV ratio at origination).
- Send an email to UGC:ugcqc, with the loan elements listed in the previous bullet.
- Calculate your refund manually using the instructions on the Calculating HPA Refund Page.
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.