CAS Mortgage Insurance Primer Presentation
How MI Works: Typical Loan
MI Benefit
Settled with the
"Percentage Option"
= (Default UPB + DQ
Interest Allowable
Expenses) x MI Coverage %
Loan Origination
Servicer Informs MI of
60-day DQ
Servicer files claim
within 60 days of
Foreclosure
Last Paid
Installment
Foreclosure
Date
Potential MI Cancellation due to:
Loan amortizes to 78% of original
home value (automatic)
Property balance reduced to 80% of
original value (borrower-initiated)
■ Current property valuation
(borrower-initiated)
Loan must be current and meet other
requirements
MI Coverage acquired by
Lender
"
Fannie Mae's
requirement for MI
Coverage Percent
determined by Original
LTV
CAS Mortgage Insurance Primer Presentation
I
|
Claim
Paid
Property
Disposition Date
Disposition
Expenses Accrued
Property Preservation
Associated Taxes
Residual loss (net of
MI Benefit) applied to
CAS structure 90 days
after property
disposition
I
Misc.
Foreclosure
Expenses Accrued
DQ Interest
Foreclosure Costs
Asset Recovery Costs
Associated Taxes
Misc.
The claim must be "perfected"
within 120 days of claim filing,
and settled within 180 days of
the "perfect date".
10/18/2017
© 2017 Fannie Mae. Trademarks of Fannie Mae.
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