Summary of Incontestability Provisions
Every United Guaranty insured loan is eligible for rescission relief at 36 months if it meets the following criteria:
- No more than two loan payments have been 30 days delinquent and no loan payment has been more than 60 days delinquent.
- All loan payments are made from the Borrower's own funds.
- No modification of the loan occurred during the first 36 months.
- Applies to all MI applications made on or after October 1, 2014, and after and approved by United Guaranty.
Full-file MI applications receive:
- Day One protection on United Guaranty's MI underwriting—including eligibility, guidelines, and appraisal.
- 12-month appraisal relief, without any additional submission requirements.
- 36-month rescission relief on everything except first-party fraud and pattern activity.
Optional Accelerated Rescission Relief available by Endorsement requires:
- Post-closing submission by the Insured of additional documents.
- No 30 days or more late payment.
- Borrower to make all payments from own funds.
- No modification of the loan during the 12-month period.
- 12-month rescission relief can be tailored to only apply to
- Borrower/loan eligibility underwriting requirements;
- Appraisal eligibility/valuation defects; or
- Both. Everything during origination of loan except for first party fraud and pattern activity.