SecureCert FAQ

SecureCert | SecureCert Rescission Relief | Incontestability Provisions | FAQ

What is the cost for SecureCert?

All SecureCert® options are offered at no additional cost.

What is accelerated rescission relief?

SecureCert's Independent Validation Endorsement provides options for accelerated rescission relief.

  • Provides the same relief as the Master Policy standard options, but you're protected sooner.
  • Two post-close options provide the maximum allowable relief—12 months—on everything during origination except first-party fraud and pattern activity.
  • There is also an option for Day One protection with delegated submissions.
  • A loan must pass Independent Validation to receive rescission relief if it is seasoned less than 36 months.
What is Day One protection?

Every loan is different, but with your accurate submission of documents—full-file or post-close delegated—United Guaranty assumes the responsibility for MI underwriting and you get rescission relief at closing. It's Day One protection.

  • More simply, if we make a mistake underwriting the loan for insurance, it's on us. So you get Day One protection on MI Eligibility, Guidelines, and the Appraisal.
  • We will not rescind coverage solely for issues such as debt-to-income (DTI) ratio errors or misapplication of our underwriting rules. Rescission exposure is limited to:
    • Non-compliance with conditions that are sometimes part of United Guaranty's MI approval.
    • Material change to the loan prior to closing that the lender does not disclose to United Guaranty.
    • Fraud or material misrepresentation that was not evident in United Guaranty's underwriting review.

We're committed to sending a decision back to you within 24 hours on every full-file review. Day One protection and fast turnaround so you close on time.

What is Independent Validation?

United Guaranty performs an Independent Validation on submissions that allows us to provide 12-month relief on:

  • Data inaccuracies and material misrepresentation on appraisal only; or
  • Everything during the origination of the loan except first-party fraud and pattern activity.

Submit the loan for MI as you do today and the additional required documents within the agreed upon timeframe.

Every Independent Validation approval results in 12-month relief if conditions in the Master Policy have been met.

Signing Up

SecureCert User Guide

How do I choose which SecureCert option to use?

Choose the offering that best meets your business needs and operational processes. United Guaranty recommends you initially choose one rescission relief option for each submission type. In the future, you can add other available options or change the option you're using.

Please note that if you choose any of the three accelerated rescission relief options, United Guaranty will amend the Policy Commitment Letter (PCL) to reflect the addition of the program. The endorsement will be issued after the PCL is returned. No action is required if you want to use the Master Policy default rescission relief for all loans.

Do I have to sign another Policy Commitment Letter (PCL)?

If you choose one of United Guaranty's default options, no action is necessary. In order to use one of the accelerated relief options, United Guaranty will amend the PCL to reflect the addition of the program. The endorsement will be issued after you execute and return the PCL. See sample copy of Master Policy Independent Validation Program Endorsement.

How do I get the necessary Policy Commitment Letter amendment?

Contact your United Guaranty Account Executive to open the request for the Policy Commitment Letter amendment and Master Policy endorsement.

Can I choose one option for full-file and one for delegated loan submissions?

Yes. You will have the flexibility to use the options that make sense for your business. If you don't have the opportunity or need, United Guaranty will automatically provide the standard relief provided in the Master Policy.

What are the steps to sign up and implement SecureCert?
  1. Contact your Account Executive to receive more detailed information.
  2. Work with United Guaranty to determine which options fit your business model.
  3. Return the updated PCL to receive the endorsement.
  4. Set a target start date and schedule training.
What if I don't choose an option?

Coverage will default to the standard relief provided in the Master Policy for the submission type (full-file or delegated).

Are these programs available for correspondent channels?

Yes. The accelerated rescission relief options can be used by correspondent originators and/or investors that place the MI with United Guaranty.

Timing

When will SecureCert be available?

SecureCert will be available on the effective date of the new Master Policy (October 1, 2014). You can sign up for SecureCert (or change your relief options) at any time.

What is the effective date for the SecureCert relief options?

SecureCert will be effective October 1, 2014. The two default Master Policy options can be used on that date by any lender with a Master Policy. The three accelerated rescission relief options can be used October 1, 2014, or as soon as you sign and return the PCL and the endorsement is issued, but no sooner than the effective date of the new Master Policy.

Implementation

Can United Guaranty help me integrate SecureCert?

Only the three accelerated rescission relief options require any change to existing processes, and those are minor. Your United Guaranty Sales Executive can help you assess your current processes and identify where changes may need to take place. You, the lender, will always own your own processes.

Process

What do I need to submit for accelerated rescission relief?

To be eligible for accelerated rescission relief for appraisal, eligibility, and guidelines you must provide the required origination documents and the following five documents after closing (and other documents as applicable):

  • Promissory note (fully executed).
  • Closing Disclosure or final HUD-1 Settlement Statement (fully executed or certified).
  • Final 1003, 65 (signed and dated).
  • Homeowner's insurance policy.
  • Title insurance policy or binder of title insurance.

Delegated submissions are eligible for accelerated rescission relief on valuation and appraisal only, with submissions of the appraisal.

How should I submit post-close documents?

Post-close documents should be submitted through Doc Station (available on United Guaranty's MIGuide® portal). United Guaranty will identify the documents as post-closing accelerated rescission relief documents and issue coverage based on the outcome of the review.

How long do I have to submit post-close documents?

You have 120 days from the Certificate Effective date to submit all documents (or as otherwise agreed in the PCL).

What happens after United Guaranty reviews the post-close documents?

After completing the review process, United Guaranty will provide written notification at the loan level advising you of the final decision.

If United Guaranty discovers an issue with a loan during its post-close Independent Validation, what actions would United Guaranty take?

The new Master Policy allows United Guaranty to either rescind coverage altogether, issue confirmation of 12-month rescission relief, or revert to the standard 36-month rescission relief. If the loan is not insurable, United Guaranty will notify you within 120 days of receiving all required documents.

When does United Guaranty notify me if coverage is declined?

United Guaranty is required to complete the Independent Validation review within 120 days of receipt of all required documents.

Is there a difference between full-file and delegated submissions?

When you submit full-file loans, you receive Day One protection for eligibility and guidelines on loans meeting United Guaranty's requirements for mortgage insurance and are eligible to receive the 12-month rescission relief of the appraisal in accordance with the Master Policy.

Full-file loans can receive accelerated rescission relief for certain other misrepresentations beyond the guidelines and appraisal when specified documents are submitted post-closing for validation. Once accelerated rescission relief is granted, the loan will receive the 12-month incontestability from certain misrepresentation in accordance with the Master Policy.

Delegated loan submissions will receive the 36-month rescission relief; however you have the option of submitting the appraisal and /or the closing documentation for validation in order to have the loan reviewed for 12-month accelerated rescission relief.

Is there a streamlined claims process with SecureCert?

Yes, there is a streamlined claims process for approved full-file or delegated loans with post-close document submission. The normal claims process is followed for all other loans.

SecureCert Details

How does United Guaranty define "first-party fraud and pattern activity"?

A first party is defined as the original insured—or any officer, employee, or agent (including any independent contractor) of the original insured. This can include the loan originator, mortgage broker or mortgage loan broker, the seller, or the escrow or closing agent or attorney.

The first party could also be anyone retained by, or acting on behalf of, any of those listed above, in connection with the loan origination. This could include the appraiser (or AVM provider), the title agent, or an officer, employee, agent, or independent contractor of any of the people listed above.

Will the GSEs buy all of the SecureCert options?

The GSEs have approved the SecureCert suite of options.

Will the GSEs require a buyback if United Guaranty finds something in the post-close process?

Terms for a buyback are negotiated between you and the GSE.

If I'm using contract underwriting with MI, does the same process apply?

Yes.

Are there volume restrictions on any of the SecureCert options?

No.

Will investors buy loans covered by SecureCert?

Terms for loan purchases are negotiated between you and your investor.

If I transfer servicing before the SecureCert process is complete, how will I know the results of the review?

The servicer of record and the originator will be notified of the final decision; the servicer can inquire, and United Guaranty will provide a copy of the documentation.