MI Retention Solutions Program (RSP)
The MI Retention Solutions Program (RSP) was developed to streamline processing for Servicers by aligning the HAMP process for loans with MI to the processes used for non-MI loans.
If a loan fails to qualify under all modification options, the Servicer needs to determine if an advance claim payment could make a modification possible. An advance claim is an advance payment made by United Guaranty help a borrower qualify for a loss mitigation program. United Guaranty's advance claim program has been expanded to include this program.
Eligibility for RSP
- The loan is ineligible for, or fails to qualify for, a HAMP modification and subsequently fails to qualify for all other available non-HAMP modification or other cure-related workout options.
- The borrower has a documented hardship.
- The loan is two payments past due.
- The property must be an owner-occupied, 1–4 unit primary residence.
- Non-GSE loans only.
- RSP Request Form
- Current workout package including, but not limited to, the following:
- Hardship letter
- Income verifications
- Bank statements
- Debt verifications
- Copy of the input and output fields generated from the NPV model.
Determining the Claim Advance Amount
- HAMP Modifications:
- The claim advance amount requested should be the amount needed to bring a failed NPV to neutral. (A failed NPV means it is more expensive to modify the loan than to let the borrower go into foreclosure.)
- Non-HAMP Modifications:
- The claim advance amount is the difference between the best modification alternative and the amount needed to create a positive cash flow by reducing the arrearage, subsidizing the borrower's monthly mortgage payment for a period of time, or some other calculation to make the modification work.
Process for RSP Submission
Submit the encrypted RSP Submission template and current workout file to:
- Email: UGC:workout; or
- Fax: 336.275.2893
In the subject line for email or fax submissions, identify each request submitted for RSP review as an MI RSP request.
Claim Advance Payment Remittance
If the claim advance request is approved, it will not be funded until the loan has been modified (including the trial period) and reported in writing to us as current. The Servicer must notify us within 30 days of the effective date of the modification.
- The claim advance amount payment shall be credited against any future claim amount payment, including any mitigated claims or supplementary claims.
- No interest shall accrue on any claim advance payment.
- The claim advance amount payment shall be returned to United Guaranty in the event of rescission or denial of claim.
If you have questions, please contact United Guaranty's Workout Department by email at UGC:workout or by phone at 800.603.3565.