Document:

CONFIDENTIAL TREATMENT REQUESTED.  INFORMATION FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED IS OMITTED AND MARKED WITH “[***]” AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

Exhibit 10.15.1

 

AMENDMENT TO

CONFIDENTIAL SETTLEMENT AGREEMENT AND RELEASE

 

This AMENDMENT TO CONFIDENTIAL SETTLEMENT AGREEMENT AND RELEASE (“Amendment”) is made and is effective as of this 24th day of September, 2013, by and between Mortgage Guaranty Insurance Corporation (“MGIC”), Countrywide Home Loans, Inc. (“CHL”) and Bank of America, N.A., in its capacity as master servicer or servicer of Subject Loans (“Servicer”).  Capitalized terms used in this Amendment without definition have the meaning given them in the Settlement Agreement.

 

RECITALS

 

WHEREAS, MGIC, CHL, and Bank of America are Parties to a Confidential Settlement Agreement and Release, dated as of April 19, 2013 (the “Settlement Agreement”); and

 

WHEREAS, the Parties desire to amend the Settlement Agreement in certain respects as specified in this Amendment.

 

NOW, THEREFORE, intending to be legally bound, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, including the promises and other matters contained herein, the Parties agree, pursuant to Section 19(g) of the Settlement Agreement, that the Settlement Agreement is hereby amended as follows:

 

		1.	Compensation for Recently Paid Loans.  Subclause (x) of Section 7(a)(ii) is amended and restated as follows:  “(x) the Settlement Percentage applicable to the Category of the True-Up Loan, and”.

		2.	Supplemental Claims.

 

		a.	Section 1(l) is amended and restated as follows: “‘Claim’ (A) has, with respect to any Subject Loan, the meaning set forth in the applicable Master Policy and (B) when used in reference to a Covered Loan or a Recently Paid Loan, also means a Supplemental Claim.”

		b.	The following Section 1(yyy) is added: “‘Default Servicing Guide’ means MGIC’s Default Servicing Guide in effect at June 2013, a copy of which is attached as Exhibit M hereto.”

		c.	The following Section 1(zzz) is added: “‘Supplemental Claim’ means a supplemental claim for items the Insured must advance under Section 5.7 of the applicable Master Policy, which supplemental claim is made after the date on which the Claim to which such supplemental claim relates is initially paid.”

		d.	The following Section 10(f) is added: “Supplemental Claims for Certain Loans:  MGIC shall make payment pursuant to the provisions of the Default Servicing Guide relevant to the filing and paying of Supplemental Claims on valid and allowable Supplemental Claims on Covered Loans and Recently Paid Loans received by MGIC within 90 days of the initial Claim payment date at the Settlement Percentage in the same manner as claims for Covered Loans. If, however, MGIC’s customary practice as to any particular type of Supplemental Claim is to waive the fact that the Supplemental Claim has not been received within 90 days of the initial Claim payment date, it shall follow that customary practice for purposes of Supplemental Claims of that type received pursuant to this Section 10(f). Any disputes regarding payment on Supplemental Claims, other than a dispute regarding the application of the preceding sentence, shall be resolved as described in the final sentence of Section 11(a), and any disputes regarding the application of the preceding sentence shall be resolved pursuant to Section 11(c).”

 

		3.	Alternative Dispute Resolution.

		a.	The following shall be added at the end of Section 11(a): “All disputes regarding any disallowance of a Supplemental Claim by MGIC in respect of any Covered Loan or Recently Paid Loan shall be resolved in the same manner and subject to the same conditions and limitations as disputes regarding an Exclusion, including without limitation, including such dispute in a Claim Group; provided, however, that for purposes of resolving disputes about disallowance of Supplemental Claims, (i) any reference to an ‘Exclusion’ shall instead be to a ‘disallowance of a Supplemental Claim’, (ii) the bases for the disallowance of a Supplemental Claim shall be those contained in the terms of the applicable Master Policy, the provisions of the Default Servicing Guide relevant to the filing and paying of Supplemental Claims and this Settlement Agreement, and (iii) the arbitrator shall be bound by the terms of this Settlement Agreement, the provisions of the Default Servicing Guide relevant to the filing and paying of Supplemental Claims, and the applicable Master Policy.”

		b.	Section 13(d)(i) is amended and restated as follows: “(i) Any disputes or claims within the scope of Sections 11(a) and (b), and any Dispute within the scope of Section 11(c);”.

		c.	Section 14(d)(i) is amended and restated as follows: “(i) Any disputes or claims within the scope of Sections 11(a) and (b), and any Dispute within the scope of Section 11(c);”.

 

		4.	Indemnification.

		a.	The following words are deleted from Section 15(b)(i):   “[***]”.

		b.	The word “or” following clause (F) of the proviso following Section 15(b)(iii) is deleted.

		c.	Clause (F) of the proviso following Section 15(b)(iii) is amended to delete the period and to add “or;” at the end of the Clause.

		d.	The following new clause shall be added to the end of the proviso following section 15(b)(iii): “(G) Any obligation of MGIC to pay a Supplemental Claim pursuant to Section 10(g).”

		5.	Settlement Agreement.  The Parties hereby affirm all other terms, provisions, and conditions of the Settlement Agreement.  All references in the Settlement Agreement to the Settlement Agreement shall mean the Settlement Agreement as amended by this Amendment.

		6.	Governing Law.  This Amendment and any Cause of Action arising under or related to this Amendment shall be governed by, and construed in accordance with, the internal laws of the State of New York without regard to the law of conflicts.

		7.	Interpretation.  This Amendment shall not be construed against any Party, but shall be construed as if the Parties jointly prepared the Amendment and any uncertainty and ambiguity shall not be interpreted against any one Party.

 

		8.	Severability.  If any provision of this Amendment is declared invalid or unenforceable, then, to the extent possible, all of the remaining provisions of this Amendment shall remain in full force and effect and shall be binding upon the Parties.

		9.	Representations and Warranties.  Each of the Parties represents that: (1) it has full power and authority to execute and deliver this Amendment and to perform its obligations under the Amendment; (2) it has taken all necessary corporate action to authorize the execution and delivery of this Amendment and the performance of its duties and obligations contemplated hereby; (3) none of such execution, delivery, or performance of this Amendment and the transactions contemplated hereby: (A) conflicts with the obligations of such Party under any material agreement binding upon it; (B) requires any authorization, consent or approval by, or registration, declaration or filing with, or notice to, any governmental authority, agency or instrumentality, or any third party, except for (i) any authorization, consent, approval, registration, declaration, filing, or notice that has been obtained or given prior to the date hereof and (ii) the Required Consents; (C) results in, or requires, the creation or imposition of any lien or other charge upon or with respect to any of the assets now owned or hereafter acquired by a Party; and (4) this Amendment, upon execution and delivery, is a valid and binding agreement, enforceable against it in accordance with the terms of the Settlement Agreement, as amended by this Amendment, subject to applicable bankruptcy, insolvency, reorganization, moratorium, insurers’ rehabilitation and liquidation, and other similar laws affecting creditor’s rights generally and general principles of equity.

 

		10.	Counterparts.  This Amendment may be executed in counterparts, and when each Party has signed and delivered at least one such counterpart, each counterpart shall be deemed an original, and, when taken together with the other signed counterparts, shall constitute one agreement, which shall be binding upon and effective as to all Parties. Signatures of the Parties transmitted by fax or .pdf shall be deemed to be their original signatures for all purposes.

 

[The next page is the signature page.]

IN WITNESS WHEREOF, the Parties have executed this Amendment to Confidential Settlement Agreement and Release as of the date first stated above.

	
MORTGAGE GUARANTY INSURANCE CORPORATION

		
COUNTRYWIDE HOME LOANS, INC.

	
 

		
 

	
/s/ Patrick Sinks

		
/s/ David A. Cassell

	
Name: Patrick Sinks

		
Name: David A. Cassell

	
Title: President/Chief Operating Officer

		
Title: Senior Vice President

	
 

		
 

	
 

		
BANK OF AMERICA, N.A., as Master Servicer or Servicer

	
 

		
 

	
 

		
/s/ John S. Cousins

	
 

		
Name: John S. Cousins

	
 

		
Title: Senior Vice President

 

EXHIBIT M

Default Servicing Guide

 

 

	
MGIC’s

	
 

	
JUNE

	
Default Servicing Guide

	
 

	
2013

MGIC’s Default Servicing Guide

Table of Contents

Table of Contents

 

	
Introduction

	
page 1

		
 

	
 

	
Communication Shortcuts

	
3

		
 

	
 

	
1 Reporting

	
 

		
 

	
 

		
1.01 Reporting Requirements

	
5

		
 

	
 

		
1.02 Reporting Defaults

	
6

		
 

	
 

		
1.03 Updating Default Status

	
6

		
 

	
 

	
2 Loss Mitigation Workouts

	
 

		
 

	
 

		
2.01 Foreclosure Sale Postponement

	
9

		
 

	
 

		
2.02 Forbearance

	
10

		
 

	
 

		
2.03 Repayment

	
11

		
 

	
 

		
2.04 Special US Treasury, GSE Programs

	
12

		
 

	
 

		
2.05 Loan Modification

	
12

		
 

	
 

		
2.06 Short Sale and Deed in Lieu of Foreclosure

	
14

		
 

	
 

	
3 Foreclosure

	
 

		
 

	
 

		
3.01 Foreclosure Commencement

	
17

		
 

	
 

		
3.02 State Time Frame Guidelines for Loans with Primary Coverage

	
18

		
 

	
 

		
3.03 Bankruptcy

	
19

		
 

	
 

		
3.04 Foreclosure Bidding Instructions

	
20

		
 

	
 

		
3.05 Deficiency Judgments

	
22

		
 

	
 

	
4 Real Estate Owned (REO)

	
 

		
 

	
 

		
4.01 REO Property Disposition for Primary Coverage

	
23

		
 

	
 

		
4.02 REO Property Disposition for Supplemental Coverage (Pool or Second-Layer Coverage)

	
24

 

	
MGIC’s Default Servicing Guide

	
 

	
Table of Contents

	
 

		
 

	
 

	
5 Claim for Loss

	
 

		
 

	
 

		
5.01 Conditions Prior to Claim

	
27

		
 

	
 

		
5.02 Exclusions from Coverage

	
28

		
 

	
 

		
5.03 Nonclaimable Items

	
28

		
 

	
 

		
5.04 Claim Documentation Requirements

	
29

		
 

	
 

		
5.05 Filing Claims

	
31

		
 

	
 

		
5.06 Check Claim Status

	
32

		
 

	
 

		
5.07 Explanation of Benefits

	
32

		
 

	
 

	
6 Exhibits

	
 

		
 

	
 

		
6.01 MGIC Financial Analysis Form

	
33

		
 

	
 

		
6.02 Arrearage and Principal Reduction Defined With Respect to Loan Modifications

	
34

		
 

	
 

		
6.03 State Time Frames for Loans with Primary Coverage

	
36

		
 

	
 

		
6.04 Claim for Loss Form

	
37

		
 

	
 

	
7 Default Servicing Tools

	
 

		
 

	
 

		
7.01 MGIC/Link Servicing

	
39

		
 

	
 

		
7.02 Automated Default Reporting

	
41

		
 

	
 

		
7.03 Secure File Transfer

	
42

		
 

	
 

		
7.04 Electronic Funds Transfer (EFT)

	
42

MGIC’s Default Servicing Guide

Introduction

 

page 1

 

Introduction

	MGIC Reservation of Rights	
MGIC retains a full and complete reservation of rights. Neither this document nor any action taken by MGIC that may appear inconsistent with this document should be construed as a waiver by MGIC of any rights or defenses it may have.

 

	MGIC Master Policy	
MGIC’s Master Policy is referred to on several occasions within this guide. To view a copy of the Master Policy, see Master Policyholder resources at www.mgic.com/ lender-services/index.html.

 

	
MGIC Delegated Servicing

Authority

	
As a servicer, you are bound by the requirements under MGIC’s Master Policy to mitigate MGIC’s loss and report certain loss mitigation measures to MGIC.

 

		
To facilitate your loss mitigation efforts, MGIC offers Delegated Servicing Authority to help streamline your default servicing processes. You can use this authority to approve or complete — without our prior approval — loss mitigation workouts (Section 2) that meet our Guidelines for Delegated Authority (referred to throughout this guide as “Delegated Guidelines”).

 

		
These guidelines may supersede any special delegation authority previously offered. We reserve the right to revoke any delegation.

 

		
Delegated Guidelines apply to loans with primary coverage and/or supplemental coverage (pool or second-layer coverage).

 

	Use of the Term “Borrowers”	
Throughout this guide, “borrowers” refers to multiple borrowers or a single borrower.

 

	
References

	
Throughout the guide, you will be referred to supporting information in other sections within the document. For example, (2.06) means you will find related information in Section 2, subsection 6. These references are hyperlinked to the appropriate page in the guide.

 

		
The guide also includes external references, linked to pages on our website, www.mgic.com.

 

	Special Notes	
Information to note will be pointed out to you with this symbol,  Note.

 

All changes made to content are indicated in green type.

 

	MGIC/Link Servicing	
In cases where you need to report or submit information to MGIC, our secure, online servicing tool, MGIC/Link (7.01), is usually the best option. You can complete most of your default servicing tasks on MGIC/Link, including reporting, requesting approvals and uploading documentation. 

 

If you’re not already an MGIC/Link user, go to www.mgic.com/signup to register for a password.

	
Support

	
If you have any questions about information presented in this guide, contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

 

page 2

 

MGIC’s Default Servicing Guide

Communication Shortcuts

 

page 3

Communication Shortcuts

Secure, automated support for servicing defaults, reporting loss mitigation efforts and filing claims.

	
■

	
Login ID and password registration for MGIC/Link Servicing and Secure File Transfer at www.mgic.com/signup

	
■

	
Questions? Contact customer_service@mgic.com or 1-800-424-6442

 

	Communication	Submission Options	
Time Frame

	Default Reporting		
	
Notice of Default

	
■  Automated Default Reporting

■  MGIC/Link Servicing – Select File/Update a Default

	
Upon 2nd consecutive past- due payment, by the 20th day of the month

	
Default Status Updates

	
■  Automated Default Reporting

■  MGIC/Link Servicing – Select File/Update a Default

■  Secure File Transfer – Select MEA Updates

■  Fax to 1-800-353-8781

	
Monthly updates by the 20th day of the month

	
Loss Mitigation/Loan Workouts

	
Loan Modification Reporting

	
■  MGIC/Link Servicing – Select Loan Modification

– Individual modifications – Submit single loan mod

– Multiple modifications – Submit Loan Mod Submission

Spreadsheet

■  Secure File Transfer – Select Loan Modifications

	
Within 30 days of completed modification effective date

	
Nondelegated

Short Sale Approval

	
■  MGIC/Link Servicing – Select Short Sale

	
Prior to agreement of terms

	
Other Nondelegated Loan

Workout Approval

	
■  MGIC/Link Servicing – Select Other Workout Types

	
Prior to agreement of terms

	
Processing Promissory

Notes Payable to MGIC

	
■  Send to:  Resurgent Mortgage Servicing

55 Beattie Place, Ste. 110, MS #003

Greenville, SC 29601

	
Upon execution, following short sale/deed in lieu execution

	
Real Estate Owned (REO)

	
Request for Approval of

Offer

	
■  Send documents to reo_marketing@mgic.com

	
Upon MGIC receipt of the

offer, through the time of claim resolution

	
Claim Filing

	
Initial Claim Filing

	
■  MGIC/Link Servicing – Select File a Claim

– Submit required documentation, DSG 5.04

	
Within 60 days of title transfer/

foreclosure completion

	
Submission of Claim

Documents

	
■  MGIC/Link Servicing – Select Upload Claim Documents

	
Submit documents before, during or after claim filing or upon request

	
Submitting Additional Expenses on a Paid Claim (Supplemental)

	
■  MGIC/Link Servicing – Select File a Claim; then

Supplemental Confirmation Required

■  Send documents to claimsquery@mgic.com

– Identify as “additional expenses” and list MGIC C/C

	
Within 90 days of initial claim payment

	
Request for Reconsideration of a Paid Claim

	
■  Send documents to claimsquery@mgic.com

– Identify as a “request to reconsider” and list MGIC C/C

	
Within 90 days of initial claim payment

	
Claim Status/ Explanation of Benefits

	
■  MGIC/Link Servicing – Select Policy Inquiries

	
 

MGIC’s Default Servicing Guide

 

page 4

 

MGIC’s Default Servicing Guide

Section 1 – Reporting

page 5

 

	
Section 1: Reporting

	
 

	
1.01 Reporting Requirements

1.02 Reporting Defaults

1.03 Updating Default Status

1.01 Reporting Requirements

 

		
Below is a summary of MGIC reporting requirements. Refer to the sections indicated for guidelines, reporting/submission options, documentation requirements and support.

 

	1.01a  Defaults	
Notify MGIC when a borrower becomes 2 consecutive payments past due by filing a Notice of Delinquency (1.02).

 

	1.01b  Default Status	
On a monthly basis, report to MGIC both the status of loans in default and your servicing efforts to remedy default as required by the Master Policy.

 

	1.01c  HAMP Modifications	
Report on a monthly basis:

 

		
■  HAMP trial status;

■ all other HAMP modification status updates; AND

■  all completed (official) HAMP modifications.

 

For details, see www.mgic.com/default-servicing/treasury-gse-programs.html.

 

	1.01d  Loan Modifications	
Report completed modifications that meet MGIC Delegated Guidelines to MGIC within 30 days of the modification effective date (2.05a).

	 	
–

	
For modifications that fall outside of MGIC Delegated Guidelines (2.05b), submit requests to MGIC for approval before completing the modification as required by the Master Policy.

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 1 – Reporting

page 6

 

1.02 Reporting Defaults

 

	1.02a	
Guidelines for

Reporting Defaults

	
Notify MGIC when a borrower becomes 2 consecutive payments past due by filing a Notice of Delinquency.

 

	
Reporting

	

File a Notice of Delinquency via:

 

■  MGIC/Link Servicing – Select File/Update a Default in the main menu; OR

 

		■	
Automated Default Reporting (ADR) – Produce your ADR file no earlier than the 20th day and report to MGIC by the 3rd-to-last business day of the month.

		Note	Contact  MGIC Customer Service  with any Mortgage  Insurance Premium questions when a loan becomes delinquent.

	
Support

	
For questions regarding ADR setup, contact MGIC eCommerce Services, ecommerce_services@mgic.com or 1-800-558-9900.

 

1.03 Updating Default Status

Following a default, report both the status of the loan and your servicing efforts to remedy the default.

 

	1.03a	

Guidelines for Updating 

Status via Automated 

Default Reporting (ADR)

	
Update default status in ADR monthly.

 

When updates aren’t reported, MGIC will send a Monthly Exception Audit (MEA) listing all loans that were previously reported as delinquent, but that are missing from the most recent ADR submission.

 

MGIC will deliver MEA reports to you through Secure File Transfer (SFT). We will notify you via e-mail that an MEA report has been posted to SFT.

 

Update the MEA with the most current status of the loans previously reported as delinquent, but that are missing from the most recent ADR submission.

 

	
Reporting 

	
Report changes in status as they occur:

 

For individual loans, submit changes via MGIC/Link Servicing; select File/Update a

Default in the main menu.

For multiple loans, submit changes via:

■   ADR OR

■ Secure File Transfer – select MEA Updates as the file recipient

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 1 – Reporting

 

page 7

 

	
1.03b

	
Guidelines for Updating Status Using a Method Other Than ADR

	
MGIC mails a Monthly Delinquency Loan Status Report (MDLSR) on each loan previously reported in default. MGIC prints the last reported status on the MDLSR to help you determine whether the status has changed.

 

Use the MDLSR to update or provide additional information about any of the following items:

■  loan status;

■  current principal balance;

■ loan due-for date;

■ delinquency status – if a bankruptcy petition was filed, include chapter, filing date and date relief was granted;

■ date foreclosure proceedings commenced (first legal action/date of the first document filed) and whether there is a foreclosure sale scheduled (3.01a);

■  foreclosure sale date, if applicable; AND/OR

■ date Borrower’s Title or Good and Merchantable Title (as defined in MGIC’s Master Policy) was acquired (5.01b).

You can also use the MDLSR to notify MGIC that:

■  a loan in default is now current;

■  a loan in default has now been paid in full;

 

Note  “Paid in full” does  not apply to servicing transfers, short sales  or presales.

■ a servicing transfer has occurred;

■  the loan number has changed;

■ the contact person for your organization has changed; AND/OR

■ your physical address has changed.

	Reporting	
Whenever a change occurs to any of the information listed above, return the updated default status information to MGIC by the 20th of the month via:

■ MGIC/Link Servicing – Select File/Update a Default in the main menu OR

■  Fax 1-800-353-8781

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 1 – Reporting

 

page 8

 

MGIC’s Default Servicing Guide

Section 2 – Loss Mitigation Workouts

 

page 9

	
Section 2:

Loss Mitigation

Workouts

	
 

	
2.01 Foreclosure Sale Postponement

2.02 Forbearance

2.03 Repayment

2.04 Special US Treasury, GSE Programs

2.05 Loan Modification

2.06 Short Sale and Deed in Lieu of Foreclosure

Loan workouts can preserve homeownership for the borrowers and prevent losses as well. The MGIC Master Policy requires you to assist and cooperate with MGIC in preventing and mitigating MGIC’s loss. This means that a loan workout, such as a repayment plan, forbearance plan or loan modification, must be offered to any borrowers who have the ability to cure the delinquency.

 

It is important to work closely with borrowers as soon as they begin to experience problems making their mortgage payment. It may even be appropriate to extend assistance to borrowers who are current on their mortgage loan if you learn they are experiencing a problem. MGIC recognizes the benefits of home retention to all involved and offers a variety of loss mitigation workout options designed to keep borrowers in their home. MGIC relies on you to contact troubled borrowers as part of your loss mitigation duties.

 

The following loss mitigation workout options can be performed as long as the terms of the workout comply with the respective MGIC Guidelines for Delegated Authority (Delegated Guidelines). These guidelines apply to primary coverage and/or supplemental coverage (pool or second-layer coverage). MGIC offers delegated authority to increase efficiency, but reserves the right to revoke this delegation on notice.

 

While MGIC prefers that you use Delegated Guidelines, we are happy to work with you on any workout type.

 

	MGIC Reservation of Rights	
MGIC retains a full and complete reservation of rights. Neither this document nor any action taken by MGIC that may appear inconsistent with this document should be construed as a waiver by MGIC of any rights or defenses it may have.

2.01 Foreclosure Sale Postponement

 

	
2.01a

	
Delegated Guidelines for Foreclosure Sale Postponement

	
You have delegated authority to postpone a scheduled foreclosure sale in order to pursue a forbearance, repayment plan, loan modification or short sale. This delegation pertains only to the postponement of the foreclosure sale.

 

MGIC’s liability (interest and expenses) may be limited to state time frames (3.02).

 

		Note	
Loss mitigation workouts that do not meet MGIC’s delegated guidelines for forbearance (2.02), repayment plans (2.03), loan modifications (2.04, 2.05) or short sales (2.06) must be submitted to MGIC for prior approval.

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 2 – Loss Mitigation Workouts

 

page 10

	
2.01b

	
Nondelegated Requirements for Foreclosure Sale Postponement

	
Submit a foreclosure sale postponement request and documentation as described below.

 

	
Documentation

	
Submit the following:

■  date of foreclosure initiation,

■  the timeline needed for postponement AND

■  information detailing the reason for postponing the foreclosure sale.

 

	
Submission

	
Request approval and submit documentation via MGIC/Link Servicing. Select Other Workout Types in the main menu.

2.02 Forbearance

	
2.02a

	
Delegated Guidelines for Forbearance Plans

	
You have delegated authority to complete a forbearance plan on MGIC-insured loans that meet the following criteria:

■ The forbearance term may not exceed 6 months from the loan due date.

■ The borrower is unable to make full monthly payments.

■ The forbearance plan should be part of a broader workout strategy for home retention or sale.

■ At the conclusion of the forbearance agreement, one of the following actions must occur:

– The loan is reinstated.

– The loan is paid in full.

– A repayment plan (2.03) that results in full reinstatement of the loan is executed.

– A loan modification (2.04, 2.05) that results in full reinstatement of the loan is executed.

– The property is sold.

	
2.02b

	
Nondelegated 

Requirements for Forbearance Plans

	

Forbearance plans falling outside of MGIC Delegated Guidelines (2.02a) must be approved before the plan is implemented.

 

Submit a request and required documentation.

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 2 – Loss Mitigation Workouts

page 11

	
Documentation

	
Submit the following:

■ the terms of the forbearance plan;

■   a complete financial package disclosing all income, assets and expenses from the last 2 months;

■   letter of hardship written by the borrowers or a personal representative; AND

■ indication of the borrowers’ ability to resolve the delinquency.

	 	
Note

	
While we ask that you make every effort to obtain required documentation, we realize that is not always possible. If despite your efforts you are unable to produce all of the required documents, submit all available documentation for MGIC to review the workout request.

 

	Submission	
Submit requests for approval and required documentation via MGIC/Link Servicing.

Select Other Workout Types in the main menu.

 

	
2.02c

	Borrower Adherence	
If borrowers do not adhere to the forbearance plan payment schedule:

■ pursue additional available workout considerations AND

■ proceed with foreclosure (3.01), as applicable.

2.03 Repayment

 

	
2.03a

	
Delegated Guidelines for Repayment Plans

	
You have delegated authority to complete repayment plans on MGIC-insured loans that meet MGIC Delegated Guidelines. The repayment term may not exceed 6 months from the loan due date.

 

	
2.03b

	

Nondelegated

Requirements for Repayment Plans

	
Repayment plans falling outside of MGIC Delegated Guidelines (2.03a) must be approved before the plan is implemented.

 

Submit a request and required documentation as described below.

 

	
Documentation

	
Submit the following documentation and information:

■ the terms of the repayment plan;

■ a complete financial package disclosing all income, assets and expenses from the last 2 months;

■ a letter of hardship written by the borrowers or a personal representative; AND

■ proof of the borrowers’ ability to resolve the delinquency.

 

	 	
Note

	
While we ask that you make every effort to obtain required documentation, we realize that is not always possible. If despite your efforts you are unable to produce all of the required documents, submit all available documentation for MGIC to review the workout request.

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 2 – Loss Mitigation Workouts

page 12

 

	Submission 	
Submit requests for approval and required documentation via MGIC/Link Servicing.

Select Other Workout Types in the main menu.

 

	
2.03c

	
Borrower Adherence

	
If borrowers do not adhere to a repayment plan schedule:

■ pursue additional available workout considerations AND

■ proceed with foreclosure (3.01), as applicable.

 

2.04 Special US Treasury, GSE Programs

 

MGIC offers Delegated Guidelines for a variety of workout options on loans with primary mortgage insurance coverage under several US Treasury- and GSE- sponsored programs.

 

For details, see www.mgic.com/default-servicing/treasury-gse-programs.html.

 

2.05 Loan Modification

 

MGIC expects you to offer a loan modification on every MGIC-insured loan in default when the borrowers have the desire and financial ability to continue making their mortgage payment after the loan is modified.

 

When you report a loan modification, we will notify you whether the approval is with or without limitations.

 

	
2.05a

	
Delegated Guidelines for Loan Modifications

	
■  Interest rate – same or lower than the premodification rate; AND

■   Term – fully amortizing, up to 50 years from loan origination date; AND

■  Loan meets the following capitalization guidelines

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 2 – Loss Mitigation Workouts

 

page 13

 

Capitalization Guidelines

 

	
Policy Type & Modified

Unpaid Principal Balance (UPB)

	
 

Approval Without Limitations

	
Approval With Limitations to UPB

(pre-mod or original UPB, whichever is less)

	
Primary

■  Less than or equal to 110% of original UPB

	
YES

	
N/A

	
■  Greater than 110% of original

UPB

	
■  Number of PITI payments capitalized

0-12 months AND

■  Payment (P&I) reduced or stays the same

Then, YES

	
■  Number of PITI payments capitalized

> 12 months AND/OR

■  Payment (P&I) increased

Then, YES, with limitations

	
Pool Only or Primary with Pool

■  Less than or equal to 105% of original UPB

	
YES

	
N/A

	
■  Greater than 105% of original

UPB

	
■  Number of PITI payments capitalized

0-6 months AND

■  Payment (P&I) reduced by 25% or more

Then, YES

	
■  Number of PITI payments >6 months

AND/OR

■  Payment (P&I) not reduced by at least

25%

Then, YES, with limitations

 

	
Note

	
If a modification exceeds the guidelines above, submit to MGIC for review.

	Reporting	Report completed loan modifications within 30 days of the modification effective date.

■ For individual modifications, use MGIC/Link Servicing. Select Loan Modification in the main menu.

■ For multiple modifications, complete and submit the Loan Modification

Submission Spreadsheet via:

– MGIC/Link Servicing – Select Loan Modification in the main menu; OR

– Secure File Transfer – Select Loan Modifications as the File Recipient.

 

We will respond with a letter for individually submitted modifications and a spreadsheet for multiple modification submissions containing:

■ Information pertaining to any premium adjustments based on changes to the reported UPB, AND

■ Approval status:

– Approval of the loan modification terms as reported to MGIC

– Approval with a limitation of the claimable principal balance in the event a loan re defaults and results in a claim

 

		Note	Refer to 6.02 for the application of arrearage and principal reduction with respect to loan modifications.

■ If you submit a claim on a modified loan not previously reported, we reserve the right to adjust the claim.

	
2.05b

	
Borrower Adherence

	
If borrowers do not adhere to modification payment terms:

■ pursue additional available workout considerations AND

■ proceed with foreclosure (3.01), as applicable.

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 2 – Loss Mitigation Workouts

 

page 14

 

2.06 Short Sale and Deed in Lieu of Foreclosure

A short sale or deed in lieu may be an appropriate workout option when all home retention options have been exhausted, and the borrowers are unable or unwilling to continue making their full mortgage payment. Under these circumstances, we prefer a short sale; however, we understand that there are situations where a deed in lieu of foreclosure may be the only appropriate workout option.

 

	 	
Note

	
On Fannie Mae or Freddie Mac loans, follow investor guidelines. MGIC has delegated approval authority to Fannie Mae and Freddie Mac for short sale and deed in lieu workouts (5.04b).

 

	
2.06a

	
Delegated Guidelines for Short Sales and Deeds In Lieu

	
You have delegated authority from MGIC to complete a borrower-titled short sale or deed in lieu on every MGIC-insured, non-GSE loan where:

■ The borrowers do not qualify for a loan modification and do not have the long- term financial ability to continue paying their full mortgage payment.

■ The following delegation criteria are met:

 

Short sale

– Unless foreclosure has been initiated, the borrowers must meet one of the allowable hardship scenarios

– The sale price is based on an interior property valuation completed within the past 90 days, or at the servicer’s discretion, 120 days

– The variance between the “as is” and “repaired” values is < 15%,

–  The net sale proceeds must equal 82% or higher of the “as is” value

– The borrowers must not receive any funds from the sale of the property or retain or regain ownership of the property 

 

Deed in lieu

– Unless foreclosure has been initiated, the borrowers meet one of the allowable hardship scenarios OR have filed bankruptcy

– Scheduled foreclosure sale date must be more than 60 days from the date of approval of the deed in lieu and may not be postponed to allow for deed in lieu consideration

– The title to the property must be free and clear of all subordinate liens or encumbrances

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 2 – Loss Mitigation Workouts

 

page 15

Allowable Hardship Scenarios

	
 

Delinquency

	
 

Stated Hardship Reason

	
Credit

Score

	
Current or

<60 days

	
■  Death

■  Long-term/permanent disability

■  Distant employment transfer, including Permanent Change of Station order, greater than 50 miles

	
Not

Applicable

	
>60-120 days

	
■  Death

■  Long-term/permanent disability

■  Distant employment transfer, including Permanent Change of Station order, greater than 50 miles

■  Unemployment outside of borrower control

■  Divorce

	
Not

Applicable

	
>120 days

	
■  Any

	
< 620

		Note	MGIC allows delegation for short sales  and deeds in lieu, regardless of occupancy type.

	
2.06b

	
Borrower Contribution Requirements

	
MGIC Delegated (Non-GSE)

■ We do not require that you obtain a contribution from the borrower; doing so is at your discretion

■ If you do obtain a contribution, the following requirements apply:

– Cash contributions must be paid to the servicer at sale closing or upon execution of the deed in lieu

– Promissory notes must be executed according to MGIC’s Promissory Note Guidelines

Promissory Note Guidelines

 

When you obtain a promissory note, whether at our direction or at your discretion, the following requirements apply:

■ Monthly payment should be affordable for the borrowers but no lower than $50 per month

■ Borrowers must sign and date the promissory note at the closing of the short sale or upon execution of the deed in lieu

■  Note must be payable to Mortgage Guaranty Insurance Corporation (MGIC, a Wisconsin insurance corporation) 

■  Upon execution, send the original, signed promissory note referencing the MGIC certificate number to:

 

Resurgent Mortgage Servicing

55 Beattie Place, Ste 110, MS #003

Greenville, SC 29601

1-800-365-7107

		Note	Resurgent will send the borrower a welcome  letter and perform all servicing activities on behalf of MGIC.

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 2 – Loss Mitigation Workouts

 

page 16

 

	
2.06c

	
Closing Provisions 

(Short Sales Only)

	
Second lien payoff provisions apply to second mortgages owned by a third party (a legal entity unaffiliated with the servicer).

 

If a second mortgage exists, and the short sale has influence on MGIC’s claim settlement (i.e., a second mortgage exists and the second lien holder demands funds to release the lien), use the following to determine the allowable payoff:

	
■

	
MGIC will agree to pay a maximum of $6,000 or an amount not to exceed 50% of the current outstanding second lien amount to the second lien holder. This requirement only applies if the net proceeds from the short sale plus MGIC’s claim payment will make the servicer whole.

 

If the short sale has no influence on the claim settlement (i.e., MGIC’s percentage option settlement amount is less than the loss on sale), MGIC has no requirements or limitations on the second lien payoff provision.

		Note	
Third-party vendor loss mitigation fees are not claimable and should not be deducted from the sales proceeds or included as an expense on the claim.

	
2.06d

	
Nondelegated 

Requirements for 

Short Sales and Deeds in Lieu

	
Short sales and deeds in lieu that fall outside of MGIC Delegated Guidelines (2.06a)require MGIC approval before the sale or deed in lieu is completed.

 

Submit your request for approval to MGIC along with the following documentation.

 

	
Documentation

	
MGIC requires the following documents:

■  a completed MGIC Financial Analysis (6.01) or comparable analysis;

■ documentation for all sources of income from the last two months, including but not limited to, paystubs and any asset account that provides 1099 income from interest or dividends, such as checking, savings and investment accounts; money market, CDs, stocks, bonds, trusts and annuities;

■ federal tax returns for the last year OR IRS Form 4506-T, Request for Transcript of Tax Return, completed and signed by the borrowers;

■ a letter of hardship written by the borrowers or a personal representative indicating the reason for default;

■ financials, income and expense breakdown, current within the last 90 days;

■  a recent credit report dated within the last 90 days;

■ an estimated HUD-1 Settlement Statement or Net Sheet (short sale only);

■ an executed Offer to Purchase agreement (short sale only);

■ a payoff statement including all fees and costs within the last 30 days; AND

■ a Broker’s Price Opinion (BPO) or an appraisal no more than 90 days old – or up to 120 days old, at your discretion – including interior photographs.

 

MGIC may request additional documentation prior to approval of the sale. While we ask that you make every effort to obtain required documentation, we realize that is not always possible. If despite your efforts you are unable to produce all of the required documents, submit all available documentation for MGIC to review the workout request.

 

	
Submission

	
Submit your request for approval and required documentation using MGIC/Link 

Servicing. Select Short Sale or Deed in Lieu, as appropriate in the main menu.

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 3 – Foreclosure

 

page 17

	
Section 3:

Foreclosure

	
 

	
3.01 Foreclosure Commencement 

3.02 State Time Frame Guidelines for Loans with Primary Coverage

3.03 Bankruptcy

3.04 Foreclosure Bidding Instructions

3.05 Deficiency Judgments

3.01 Foreclosure Commencement

 

	
3.01a

	
Guidelines for 

Foreclosure Commencement

	
When a default cannot be resolved through a loan workout, foreclosure must be initiated by filing a complaint in the appropriate court; publishing a notice of sale or by such other process as required by Applicable Law by the end of the 4th month (120th day) of default.

 

		Note	In instances where you receive returned keys from homeowners  and/or are made aware of a property’s  abandonment,  immediately begin the foreclosure process.

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 3 – Foreclosure

 

page 18

3.02 State Time Frame Guidelines for Loans with Primary Coverage

 

	
3.02a

	
Guidelines for State Time Frames

	
MGIC has state time frames (6.03) that list the number of days MGIC allows to complete a foreclosure, subject to additional time required for diligent servicing and loss mitigation activities. If the number of days submitted on a claim exceeds the applicable State Time Frame, please provide to MGIC a chronology of events (5.04a). MGIC will review the information to determine if additional days claimed will be allowed.

 

State time frame intervals

■ Foreclosure commencement – 150 days (5 months) from the due date of the last paid installment to initiate the legal foreclosure action (typically notice of default or complaint)

■ Foreclosure duration – Time from foreclosure commencement to foreclosure completion; varies based on state-by-state foreclosure statutes

■ Claim filing – 60 days from foreclosure completion

 

Foreclosure Duration

 

	
Last Paid 

Installment

	
Foreclosure Commencement

	
Foreclosure

Completion

	
Claim 

Filing

	 	 	
	
5 months (150 days) if last paid installment is 5/1/08 or after

	
Variable days based on State & Foreclosure Method from Foreclosure Commencement to Foreclosure Completion

	60 days 

 

		Note	
Short sale/deed in lieu: State time frame guidelines also apply to short sale and deed in lieu claims. Claim filing is required within 60 days of the short sale closing or execution of the deed in the case of a deed in lieu.

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 3 – Foreclosure

 

page 19

 

3.03 Bankruptcy

 

Different rules and procedures may apply to each bankruptcy proceeding. Once you are notified that borrowers have filed a bankruptcy petition, it is good practice to seek the advice of an attorney familiar with bankruptcy law to determine the best, most cost-effective course of action for each bankruptcy case.

Prompt, diligent follow-up on bankruptcy cases can lead to substantial net savings.

 

	
3.03a

	
Guidelines for Borrowers Filing Bankruptcy

	
Initiating relief from bankruptcy under a Chapter 13 filing must be completed within 60 days from the date of the last payment under the bankruptcy plan.

Initiate foreclosure within 60 days after:

■ the automatic stay is lifted,

■  the bankruptcy case is dismissed OR

■  the borrowers are discharged.

 

	
Reporting

	
If borrowers are involved in any bankruptcy proceeding, notify MGIC via MGIC/Link Servicing. Provide the following information:

■ the type of bankruptcy filed,

■ the filing date AND

■ the date the relief from automatic stay was granted.

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 3 – Foreclosure

 

page 20

 

3.04 Foreclosure Bidding Instructions

 

MGIC requires servicers to utilize the following foreclosure bidding instructions to determine the proper bid amount for properties with MGIC-insured loans. 

 

Note that the MGIC claim payment will never exceed our percentage guaranty option unless we elect to acquire the property.

 

	
3.04a

	
Foreclosure Bid Calculation Reference Table

 

	 	
Note

	
If the bid calculation exceeds the total mortgage indebtedness, bid the total debt.

 

	
Property

State

	
 

Bidding Instructions

	
AK(1)

	
Greater of 85% FMV or investor guidelines

	
AL

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
AR

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
AZ(1)

	
Greater of 85% FMV or investor guidelines

	
CA(1)

	
Greater of 85% FMV or investor guidelines

	
CO

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
CT(2)

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
DC

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
DE

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
FL

	
Start at $100, up to greater of 85% FMV or Make Whole Amount if required by investor

	
GA(1)

	
Greater of 85% FMV or investor guidelines

	
HI

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
IA(1)

	
Greater of 85% FMV or investor guidelines

	
ID

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
IL

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
IN

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
KS

	
100% of total debt

	
KY

	
Start at 2/3 Sheriff Appraisal up to 85% of FMV or Make Whole Amount if required by investor guidelines

	
LA

	
Start at 2/3 Sheriff Appraisal up to 85% of FMV or Make Whole Amount if required by investor guidelines

	
MA

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
MD

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
ME

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
MI

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
MN(1)

	
Greater of 85% FMV or investor guidelines

	
MO

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
MS

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
MT(1)

	
Greater of 85% FMV or investor guidelines

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 3 – Foreclosure

 

page 20

 

	
Property

State

	
 

Bidding Instructions

	
NC

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
ND(1)

	
Greater of 85% FMV or investor guidelines

	
NE(1)

	
Greater of 85% FMV or investor guidelines

	
NH

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
NJ(1)

	
Start at $100, up to greater of 85% FMV or investor guidelines

	
NM

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
NV

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
NY(1)

	
Greater of 85% FMV or investor guidelines

	
OH

	
Start at 2/3 Sheriff Appraisal, up to greater of 85% FMV or Make Whole Amount if required by investor

	
OK

	
Start at 2/3 Sheriff Appraisal, up to greater of 85% FMV or Make Whole Amount if required by investor

	
OR(1)

	
Greater of 85% FMV or investor guidelines

	
PA(1)

	
Start at Sheriff cost, up to greater of 85% FMV or Make Whole Amount if required by investor guidelines

	
RI

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
SC(3)

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
SD(1)

	
100% of total debt

	
TN

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
TX

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
UT

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
VA

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
VT(1)

	
Greater of 85% FMV or investor guidelines

	
WA(1)

	
Greater of 85% FMV or investor guidelines

	
WI(1)

	
Greater of 85% FMV or investor guidelines

	
WV

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
WY(1)

	
Greater of 85% FMV or investor guidelines

	
 

	
Guam(1)

	
Greater of 85% FMV or investor guidelines

	
Puerto Rico(1)

	
Greater of 85% FMV or investor guidelines

 

	 
	
FOOTNOTES

	
(1) MGIC does not pursue deficiencies in these states.

	
(2) In a strict foreclosure action, MGIC requires that you file a motion within 30 days after the title vests, in order to preserve MGIC’s deficiency rights. Please instruct your attorney accordingly

	(3) The deficiency should be set forth in the initial pleadings.

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 3 – Foreclosure

 

page 21

 

	
3.04b

	
Bid Calculation Components

	
Fair Market Value (FMV)

 

MGIC requires servicers to obtain and use one of the following documents to determine the appropriate FMV:

■ A BPO less than 120 days old as of the foreclosure sale date OR

■  An appraisal, where required by state statute, that is less than 120 days old as of the foreclosure sale date.

 

MGIC does not accept values determined by Automated Valuation Models (AVMs); however, we will accept a bidding value derived through Fannie Mae’s or Freddie Mac’s valuation model.

 

For variances between “as is” and “repaired” values:

■ If 10% or less, use the “as is” value for FMV.

■ If greater than 10%, use the “repaired” value for FMV.

Total Debt or Total Mortgage Indebtedness

The total amount of debt associated with the mortgage includes principal, interest and any additional costs (attorney fees, property preservation costs, etc.) incurred.

 

Make Whole Amount

Fannie Mae and Freddie Mac define the “make whole amount” as total mortgage indebtedness less the amount of the anticipated mortgage insurance claim payment. For questions regarding the make whole bid amount, contact your investor.

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 3 – Foreclosure

 

page 22

 

3.05 Deficiency Judgments

 

	
3.05a

	
Guidelines for 

Deficiency Judgments

	
MGIC will notify you in writing if we determine that you should preserve our subrogated deficiency rights. 

 

MGIC requires you to preserve its right to a deficiency judgment if the deficiency is estimated to exceed $30,000. 

 

MGIC will reimburse additional accrued interest and certain expenses resulting from this extended redemption period or delay if:

■ the deficiency is preserved or established at MGIC’s direction AND

■ there is an extended redemption period or a delay directly related to preserving or establishing the deficiency (beyond the usual custom and practice).

 

These additional amounts must be identified clearly on the claim form.

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 4: Real Estate Owned (REO)

 

page 23

 

	
Section 4:

Real Estate 

Owned (REO)

	
 

	
4.01 REO Property Disposition for Primary  Coverage 

4.02 REO Property Disposition for Supplemental Coverage

(Pool or Second-Layer Coverage)

 

4.01 REO Property Disposition for Primary  Coverage

 

	
4.01a

	
Guidelines for Property Disposition for Primary Coverage

	
MGIC encourages servicers to pursue marketing of REO properties prior to claim filing or resolution. 

 

List price approval is not required.

 

Offers deemed acceptable by the insured must be submitted for approval until the claim is resolved.

 

	
Documentation

	
MGIC requires the following documentation for offer approval:

■ interior valuation with photos;

■ cost of any repairs made; AND

■ sale terms including:

– offer amount,

– closing date,

– estimated closing costs for buyer and seller AND

– any other miscellaneous terms of sale.

For Sales With Influence on the MGIC Claim for Loss

Include the following with your claim submission:

■ a copy of the HUD-1 Settlement Statement (required in order to receive a claim payment).

 

		Note	The MGIC Sale Approval Letter will indicate whether the offer is with or without influence to the claim for loss. If the sale has influence to the claim for loss and there are changes to the terms of the sale, MGIC’s approval is required.

For Sales With No Influence on the MGIC Claim for Loss

You are not required to provide a copy of the HUD-1 Settlement Statement. MGIC approval is not required for any change to the terms of sale.

	Submission	Send e-mail to reo_marketing@mgic.com, including your submission request and supporting documents.

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 4 – Real Estate Owned (REO)

page 24

	
4.02

	
REO Property Disposition for Supplemental Coverage (Pool or Second-Layer Coverage)

 

	
4.02a

	
Guidelines for REO 

Property Disposition

for Supplemental 

Coverage (Pool or 

Second-Layer 

Coverage)

	
MGIC will oversee the insured’s marketing activity for all REO properties with supplemental pool or second-layer coverage.

 

Listing Approval

 

Submit marketing packages for listing approval within 30 days of property possession.

 

Upon receipt, MGIC will review the package. Within 3 business days, you will receive our response, including listing instructions and an approved minimum net sale proceeds figure. The list price approval is valid for 60 days.

 

Upon listing, all of the following apply:

■ All list price reductions that may result in less than the approved minimum net sale proceeds must be approved by MGIC.

■ An updated BPO is required every 90 days.

■ Monthly status reports of the marketing activity of each property must be provided to MGIC.

 

Offer Processing Approval

You may negotiate any offer that will result in a net sale proceeds amount greater than or equal to the minimum net sale proceeds amount approved by MGIC. Submit to MGIC for approval any offers deemed acceptable by the insured that do not meet the minimum net sales proceeds.

 

	
Documentation

	
Listing Approval

Submit marketing packages including:

■ a copy of the appraisal from loan origination

■  contact name and phone number for individual with access to property

■ 2 interior valuations with photos:

– 1 BPO obtained from an agent selected by the servicer/insured AND

– 1 BPO obtained through MGIC Real Estate Operations (order BPOs at REVSalesSupport@mgic.com)

■ an indication of the recommended marketing strategy, “as is” or “repaired,” and

■  the suggested list price;

■ eviction information, as applicable, including start and end dates, and whether the occupant is a tenant or borrower (as available); AND

■  bids for repair — prior MGIC approval is required for any nonemergency repairs to be completed on properties with supplemental coverage.

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 4 – Real Estate Owned (REO)

page 25

 

Offer Processing

If you have an offer requiring MGIC approval, submit the following:

■ a copy of the sales terms, including:

– the offer amount, closing date and estimated closing costs for the buyer and the seller; AND

–   any other miscellaneous terms of the offer agreement.

		Note	
Provide the HUD-1 Settlement Statement as soon as it’s available, regardless of when the supplemental (pool or second-layer coverage) claim is filed.

	Submission	Send e-mail to reo_marketing@mgic.com, including your submission request and supporting documents.

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 4 – Real Estate Owned (REO)

page 26

 

MGIC’s Default Servicing Guide

Section 5: Claim for Loss

 

page 27

 

	
Section 5:

Claim for Loss

	
 

	
5.01 Conditions Prior to Claim

5.02 Exclusions from Coverage

5.03 Nonclaimable Items

5.04 Claim Documentation Requirements

5.05 Filing Claims

5.06 Check Claim Status

5.07 Explanation of Benefits

 

	MGIC Reservation of Rights	
MGIC retains a full and complete reservation of rights. Neither this document nor any action taken by MGIC that may appear inconsistent with this document should be construed as a waiver by MGIC of any rights or defenses it may have.

 

5.01 Conditions Prior to Claim

 

	
5.01a

	
Guidelines for 

Compliance

	
In order to be entitled to a claim payment, you must comply with all conditions under the MGIC Master Policy, including but not limited to the following:

■  File the Notice of Default and ongoing monthly reporting in a timely manner (1.02, 1.03).

■ Make a good faith effort to mitigate MGIC’s loss (Section 2).

■ Commence and complete foreclosure as required by MGIC (Section 3).

■ Obtain MGIC’s approval as required on borrower-titled (5.01b) or lender-titled sales of the property (Section 4).

■ File the claim for loss in a timely manner (Section 5).

■  Provide supporting documentation and information as requested by MGIC (5.04).

 

	
5.01b 

	
Guidelines for Title Acquisition

	
Acquisition of title to the property is generally a prerequisite to filing a claim for loss, subject to the following requirements:

 

Good and Merchantable Title

 

Good and Merchantable Title is title to the property that is free and clear of all liens, restrictions and encumbrances, including the borrowers’ right of redemption, other than title exceptions permitted by MGIC.

 

		Note	
Good and Merchantable Title is required for all loans for which MGIC elects to acquire the property and loans with supplemental coverage (pool or second-layer coverage).

 

Borrower’s Title

 

Borrower’s Title is title to the property as was vested in the borrower at the time of conveyance through foreclosure or deed in lieu of foreclosure.

 

		Note	
If MGIC does not elect to acquire title to the property in settlement of the claim, only Borrower’s Title is required to file the claim.

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 5 – Claim for Loss

page 28

 

Other Acceptable Title Transfer Scenarios

■ a borrower-titled short sale is closed; OR

■ the property is acquired by a third-party bidder at the foreclosure sale; OR

■ MGIC exercises its option to accelerate filing of a claim for loss.

 

5.02 Exclusions from Coverage

Refer to Section 4 of MGIC’s Master Policy for information regarding situations that may jeopardize or affect claim payments. 

 

To view a copy of the MGIC Master Policy, see Master Policyholder resources at www.mgic.com/lender-services/index.html.

 

5.03 Nonclaimable Items

 

Certain fees are nonclaimable, including, but not limited to:

■ Attorney fees associated with robo-signing

■  Automated Valuation Model (AVM) fees

■  Borrower outreach/field service/door knock fees

■ Expenses associated with environmental hazards

■ Incentive fees

■ Late charges

■ Mortgage insurance premiums

■ Sheriff’s deposits

■ Tax penalties and interest

■   Technology fees, including connectivity, invoicing and processing fees

■ Transaction fees

■ Vendor fees

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 5 – Claim for Loss

page 29

 

5.04 Claim Documentation Requirements

 

Providing all required documentation will expedite processing your claim. 

Submit supporting claim documents before, during or after filing a claim. 

Submitting documents does not constitute filing of a claim; you must file a claim separately. See claim filing options on www.mgic.com/default-servicing/claims.html.

		Note	
When MGIC requests a document to support your claim, and if after multiple and reasonable efforts to locate the specific document, you have determined you will never be able to supply it, provide official notification to MGIC using the Unable to Provide selection within MGIC/Link’s Claim Documents feature.

 

	
5.04a

	
Minimum Documentation

Requirements for all Claims

	
MGIC requires the following documentation to process your claim:

 

■ A loan payment history from origination to claim filing with corresponding escrow and suspense balances; however, at a minimum, a loan payment history for: 

– The last 12 payments prior to claim filing OR

– If the payment due date has advanced, payment history from the first date of default to claim filing.

■ a comprehensive list, in chronological order, of your efforts and the events pertaining to: 

– collection,

– foreclosure,

– loss mitigation,

– bankruptcy AND

– other legal activities;

■  a copy of your collections and loss mitigation systems’ notes;

■ evidence of title transfer (foreclosure deed);

■  if a third-party outbid, a copy of the third-party check;

■ a copy of the complete loan origination package and closing documents; AND

■  any potential additional information (5.04b).

 

	 	
Note

	
If the state time frame is exceeded, see  3.02a for details.

 

	
Submission

	
Submit supporting claim documents using MGIC/Link’s Claim Documents feature.

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 5 – Claim for Loss

page 30

 

	
5.04b

	
Potential Additional Documentation

	

MGIC may require additional documentation in order to process your claim, based on the specifics of the loan, certificate or claim type.

 

Pay-Option ARMs or Loans with Negative Amortization

■  a copy of the Pay-Option ARM Note

Loss Mitigation Efforts

■  terms of any forbearance agreements, repayment plans or modification agreements

■  servicing notes, including a complete chronology of events

 

Short Sales

■ The additional documentation below applies to both short sales where MGIC has delegated approval authority to Fannie Mae and Freddie Mac and any non-GSE short sales:

– your borrower-titled short sale approval letter;

–  a copy of the final HUD-1 Settlement Statement;

–  a Broker’s Price Opinion (BPO) or an appraisal no more than 120 days from approval, including interior photographs

■  The additional documentation listed below applies to non-GSE short sales only:

– contribution information, if applicable; AND

– a copy of the executed sales contract.

 

Deed in Lieu

■ The additional documentation below applies to both deed in lieus where MGIC has delegated approval authority to Fannie Mae and Freddie Mac and any non- GSE deed in lieus: 

– your deed in lieu approval letter;

– the Deed transferring title; AND

– contribution information, if applicable.

 

REO Sales

■  a copy of the final HUD-1 Settlement Statement and redemption statements;

■  a valuation (BPO or appraisal) with any repair addenda; AND

■  the approval letter containing the sale terms. 

 

GSE Supplemental Coverage Claims (pool or second-layer coverage)

■  Primary coverage claim payment amount and date paid

 

	
Submission

	
Submit supporting claim documents using MGIC/Link’s Claim Documents feature.

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 5 – Claim for Loss

page 31

 

	
5.04c

	

Acquisition 

Documentation

	

If MGIC elects to acquire title to the property, you are required to provide MGIC or its designee the following documents prior to claim payment:

■ a recordable warranty deed (e.g., Grant Deed for California property, Covenant Deed for Michigan property) containing the normal and customary warranties and covenants in the usual and customary form (Quit Claim Deeds are not an acceptable form of conveyance to MGIC); 

■ all appropriate state and county transfer forms (executed, if required);

■  evidence of Good and Merchantable Title;

■ evidence that all property taxes are paid current as of the date of acquisition; AND

■ if the property is subject to a homeowners association/condo assessment, a written statement from the association showing that:

– all dues, assessments, penalties and interest are paid current; AND

–  all filed liens have been released or satisfied.

 

	
Submission

	
Submit supporting claim documents using MGIC/Link’s Claim Documents feature.

 

5.05 Filing Claims

	
5.05a

	

Primary Coverage 

Claims

	
If Fannie Mae is the investor, file the claim on behalf of Fannie Mae. 

 

If Freddie Mac is the investor, do not file a claim; Freddie Mac will file directly with MGIC. 

 

For all other investors, it’s typical that you file the claim on their behalf.

 

	 	
Note

	
Servicing documentation  requests are sent to and typically fulfilled by the Servicer regardless of Investor.

	Time Frame Requirements	
A claim on a loan must be filed within 60 days after title transfer which, could be one of the following:

■  a foreclosure sale has been completed OR

■  the property is sold as a borrower-titled short sale (5.01b)

■ For deeds in lieu of foreclosure, a claim must be filed within 90 days from the date of deed in lieu approval and within 60 days of execution of the deed in lieu.

 

	
Submission

	
See claim-filing options at www.mgic.com/default-servicing/claims.html.

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 5 – Claim for Loss

 

page 32

	
5.05b

	
Supplemental Coverage (Pool or Second-Layer Coverage) Claims

	

If a loan has GSE supplemental coverage (pool or second-layer coverage), the investor will file the claim.

 

For non-GSE, insured loans with supplemental coverage (pool or second-layer coverage), you are responsible for filing the claim.

 

	
Time Frame Requirements

	
File within 60 days AFTER closing the sale of the property.

	
Submission

	
See claim-filing options at www.mgic.com/default-servicing/claims.html.

 

	
5.05c

	
Supplemental/Review Claims

	

You can file a supplemental/review claim for one or a combination of the following reasons:

■ To request additional expenses on a paid claim

■ To request that MGIC to reconsider expenses previously disallowed on a paid claim

 

		Note	All requests must include supporting documentation  that has not already been provided.

	Time Frame Requirements	
File within 90 days of the initial claim payment. MGIC will not consider requests and supporting documentation submitted after 90 days from the initial claim payment.

 

	
Submission

	
When requesting additional expenses on a paid claim: 

■ Submit additional expense information using the supplemental/review claim form on MGIC/Link Servicing.

■ Send all supporting documentation to claimsquery@mgic.com or via Secure File Transfer; select Claimsquery as File Recipient. 

When requesting review and payment of previously disallowed items: 

■  Send all supporting documentation via Secure File Transfer. Select Claimsquery as File Recipient.

 

5.06 Check Claim Status

Regardless of how you file a claim, check its status (7.01g) on MGIC/Link Servicing.

 

5.07 Explanation of Benefits

 

To help you understand how we arrived at a claim benefit amount, refer to the Explanation of Benefits (EOB) statement. The EOB statement includes a detailed explanation of the interest and expense calculations and a claim summary. 

 

Regardless of how you file a claim, access its EOB (7.01g) on MGIC/Link Servicing. 

 

In addition, Electronic Funds Transfer (EFT) users can view and print the EOB from the MGIC/Link Servicing Reports menu (7.01h).

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 6 – Exhibits

page 33

	
Section 6:

Exhibits

	
 

	
6.01 MGIC Financial Analysis Form 

6.02 Arrearage and Principal Reduction Defined With Respect to Loan Modifications 

6.03 State Time Frames for Loans with Primary Coverage 

6.04 Claim for Loss Form

 

6.01 MGIC Financial Analysis Form

Use the MGIC Financial Analysis Form — or a comparable analysis — to measure monthly cash flow, short-term savings and long-term savings. (If you use a form other than MGIC’s, do not include the MI claim payment in your calculations.) 

 

The form is available on MGIC/Link Servicing. Select Short Sale in the main menu. Enter the certificate number and select MGIC Financial Analysis Form.

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 6 – Exhibits

page 34

	
6.02

	
Arrearage and Principal Reduction Defined, With Respect to Loan Modifications

 

6.02a Arrearage

6.02b Principal Reduction

6.02c Examples

Refer to these definitions for the application of arrearage and principal reduction as part of a loan modification. The table below includes examples of use and the impact on claim payment.

 

	6.02a Arrearage	
When a loan is delinquent, a modification typically will address the arrearage (delinquent PITI payments, including claimable interest and expenses). MGIC defines the options in the following ways:

■   Capitalize arrearage. The arrearage is added to the principal balance of the loan and included in the amortization calculation.

		Note	
Although not common, the arrearage may be identified as deferred or a forbearance, but still amortized. This is the same as capitalizing the arrearage.

 

■ Defer/forbear arrearage. The actual principal amount due and payable at maturity of the loan (or sale of the property) is the original unmodified principal amount, less any and all periodic principal payments the borrowers make until maturity or sale. However, the contractual payment the borrowers make is no longer fully amortized, as the arrearage is excluded from the amortization calculation (defer/forbear arrearage). 

■ Balloon payment arrearage. The arrearage amount is due on a specific date, typically paid in a lump sum at the end of the mortgage term. The contractual payment the borrower makes is no longer fully amortized as the arrearage is excluded from the amortization calculation.

 

	6.02b Principal Reduction	
The modification includes a component to reduce the current unpaid principal balance (UPB). The amount of the principal reduction can be forgiven or handled as a forbearance.

■  Principal reduction/forgiveness. The current UPB is reduced by a specific amount. Payments are based on the new, reduced UPB. The principal may be forgiven:

– in total at the time of the modification OR

– over a period of time if the borrower remains current.

In some cases, a lender may require that the borrowers share any equity in the property at time of payout.

■ Principal forbearance. The principal amount is not amortized (included in the monthly payments), but is due in full at the time of sale or payoff of the loan.

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 6 – Exhibits

page 35

 

	
6.02c

	
Examples

 

	
 

	
 

Description

	
 

Claim Impact1

	
 

Capitalize Arrearage (may be called deferred or forbearance, but it is amortized)

	
 

UPB = $200,000

Loan is delinquent by $3,000

■  Arrearage = $3,000 fully amortized (capitalized)

■  New UPB = $203,000

 

The borrowers are responsible for paying on a UPB of $203,000.

	
 

Claimable amount = $203,000

	
 

Forbear (defer or balloon) arrearage

	
 

UPB = $200,000

Loan is delinquent by $3,000

■  Arrearage = $3,000 (forbear, balloon or defer), not amortized

■  New UPB = $200,000

 

The borrowers are responsible for paying on a UPB of $200,000 with a final payment of $3,000 due upon sale or payoff of the loan, in addition to any remaining amount of the modified UPB.

	
 

Claimable amount = $203,000

■  Calculate interest on

$200,000

■  No interest calculated on forbearance amount of

$3,000

	
 

Capitalize arrearage; forbear principal

	
 

UPB = $200,000

Loan is delinquent by $3,000

■  Arrearage = $3,000 fully amortized (The amount is capitalized, but the Servicer may refer to it as forbearance, ballooned or deferred.)

■  Principal = $100,000 (forbear, balloon or defer), not amortized

■  New UPB = $103,000

 

The borrowers are responsible for paying on a UPB of $103,000 with a final payment of $100,000 due upon sale or payoff of the loan, in addition to any remaining amount of the modified UPB.

	
 

Claimable amount = $203,000

■  Calculate interest on

$103,000

■  No interest calculated on

$100,000

	
 

Forbear (defer or balloon) arrearage; forbear principal

	
 

UPB = $200,000

Loan is delinquent by $3,000

■  Arrearage = $3,000 (forbear, balloon or defer), not amortized

■  Principal = $100,000 (forbear, balloon or defer), not amortized

■  New UPB = $100,000

 

The borrowers are responsible for paying on a UPB of $100,000 with a final payment of $103,000 due upon sale or payoff of the loan, in addition to any remaining amount of the modified UPB.

	
 

Claimable amount = $203,000

■  Calculate interest on

$100,000

■  No interest calculated on

$103,000

	
 

Forgive (reduce)

principal 2

	
 

UPB = $200,000

Loan is delinquent by $3,000

■  Arrearage = $3,000 capitalized, fully amortized

■  Principal = $50,000 forgiven, not amortized

■  New UPB = $153,000

 

The borrowers are responsible for paying on a UPB of $153,000. The $50,000 in principal may be completely forgiven or may be due upon sale or payoff of the loan based on the terms of the program.

	
 

Claimable amount = $203,000

■  Calculate interest on

$153,000 calculated with interest

■  No interest calculated on

$50,000

 

1 The claimable amount listed assumes the loan modification meets MGIC’s guidelines for delegated authority or that it was reviewed and approved by MGIC.

2  If the forgiveness is the result of litigation or a settlement, the forgiven amount may not be claimable.

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 6 – Exhibits

page 36

 

6.03  State Time Frames for Loans with Primary Coverage

 

The table below lists the number of days MGIC allows to complete a foreclosure subject to additional time required for diligent servicing and loss mitigation activities. If the number of days submitted on a claim exceeds the applicable State Time Frame, please provide to MGIC a chronology of events. MGIC will review the information to determine if additional days claimed will be allowed.

 

	
State

	
Method of Foreclosure

	
# of Days from

Due Date of 1st Unpaid Installment to Claim Filing*

	
 

Paid Through

Date Prior to Claim Filing*

	
AL

	
Power of Sale

	
240

	
270

	
AK

	
Trustee Sale

Judicial w/Redemption

	
300

690

	
330

720

	
AZ

	
Trustee Sale

Judicial

	
300

450

	
330

480

	
AR

	
Power of Sale

	
300

	
330

	
CA

	
Trustee Sale

Judicial w/Redemption

	
300

900

	
330

930

	
CO

	
Trustee Sale w/Redemption

	
345

	
375

	
CT

	
Strict Foreclosure

Power of Sale

	
360

420

	
390

450

	
DE

	
Judicial

	
390

	
420

	
DC

	
Trustee Sale

	
240

	
270

	
FL

	
Judicial

	
390

	
420

	
GA

	
Power of Sale

	
240

	
270

	
Guam

	
Non-Judicial

	
360

	
390

	
HI

	
Judicial

	
390

	
420

	
ID

	
Trustee Sale

Judicial w/Redemption

	
360

540

	
390

570

	
IL

	
Judicial w/Redemption

Judicial w/Redemption-Deficiency

Judicial w/Redemption- Abandonment

	
450

480

300

	
480

510

330

	
IN

	
Judicial w/Redemption

	
420

	
450

	
IA

	
Non-Judicial

Judicial w/o Deficiency

Judicial w/o Deficiency (Non-Owner-Occupied)

Judicial w/Deficiency

	
300

480

360

660

	
330

510

390

690

	
KS

	
Judicial w/Redemption

	
450

	
480

	
KY

	
Judicial

	
360

	
390

	
LA

	
Judicial

	
360

	
390

	
ME

	
Judicial w/Redemption

	
510

	
540

	
MD

	
Trustee Sale w/Redemption

	
285

	
315

	
MA

	
Trustee Sale

	
390

	
420

	
MI

	
Power of Sale

– w/Redemption

– Abandonment

– w/1 Year Redemption (properties in excess of 3 acres)

	
 

450

300

630

	
 

480

330

660

	
MN

	
Power of Sale/Redemption

Judicial w/Deficiency

	
450

660

	
480

690

	
MS

	
Trustee Sale

	
240

	
270

	
MO

	
Trustee Sale

	
240

	
270

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 6 – Exhibits

page 36

 

	
State

	
Method of Foreclosure

	
# of Days from

Due Date of 1st Unpaid Installment to Claim Filing*

	
 

Paid Through

Date Prior to Claim Filing*

	
MT

	
Power of Sale

Judicial w/Redemption

	
300

660

	
330

690

	
NE

	
Trustee Sale

Judicial

	
270

390

	
300

420

	
NV

	
Trustee Sale

Judicial w/Redemption

	
300

660

	
330

690

	
NH

	
Power of Sale

	
240

	
270

	
NJ

	
Judicial w/o Deficiency

Judicial w/Deficiency

	
480

660

	
510

690

	
NM

	
Judicial w/Redemption

	
360

	
390

	
NY

	
Judicial

	
480

	
510

	
NC

	
Trustee Sale

	
240

	
270

	
ND

	
Judicial w/Redemption

	
360

	
390

	
OH

	
Judicial w/Confirmation

	
450

	
480

	
OK

	
Judicial

	
360

	
390

	
OR

	
Trustee Sale

	
330

	
360

	
PA

	
Judicial

	
390

	
420

	
Puerto Rico

	
Judicial

	
540

	
570

	
RI

	
Power of Sale

	
240

	
270

	
SC

	
Judicial w/o Deficiency

Judicial w/Deficiency

	
330

360

	
360

390

	
SD

	
Judicial w/Redemption

	
480

	
510

	
TN

	
Trustee Sale

	
240

	
270

	
TX

	
Power of Sale

Judicial

	
220

360

	
250

390

	
US Virgin Islands

	
Trustee Sale Judicial w/Deficiency

	
510

	
540

	
UT

	
Trustee Sale

Judicial w/Redemption

	
330

510

	
360

540

	
VT

	
Judicial w/Redemption

	
420

	
450

	
VA

	
Trustee Sale

	
240

	
270

	
WA

	
Trustee Sale

Judicial w/Deficiency

	
330

690

	
360

720

	
WV

	
Trustee Sale

	
270

	
300

	
WI

	
Judicial w/o Deficiency

Judicial w/Deficiency

	
450

630

	
480

660

	
WY

	
Power of Sale w/Redemption

	
405

	
435

 

*Add up to an additional 165 days if a borrower’s bankruptcy filing prevented timely initiation or completion of foreclosure.

	
Support

	
Refer to MGIC’s State Time Frame Guidelines (3.02) for additional information.

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 6 – Exhibits

page 37

 

6.04 Claim for Loss Form

 

File a claim for loss using MGIC/Link Servicing’s secure, web based form. Or if you’re unable to use MGIC/Link, complete the editable version of the form, print and fax to MGIC, 1-800-353-8781. A full-size version is available at www.mgic.com/default-servicing/default-guides.html.

 

 

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 6 – Exhibits

page 38

 

MGIC’s Default Servicing Guide

Section 6 – Exhibits

page 39

 

	
Section 7:

Default

Servicing Tools

	
 

	
7.01 MGIC/Link Servicing

7.02 Automated Default Reporting

7.03 Secure File Transfer

7.04 Electronic Funds Transfer (EFT)

 

7.01 MGIC/Link Servicing

 

MGIC/Link Servicing provides you with a secure, automated support hub for servicing defaults, reporting your loss mitigation efforts and filing claims.

Register for your MGIC/Link Servicing login ID and password at www.mgic.com/signup.

7.01a Report Defaults and Default Status

7.01b Submit Loss Mitigation Workouts

7.01c Report HAMP Modifications for GSE and Non-GSE Loans

7.01d Report Loan Modifications

7.01e File a Claim

7.01f Uploading Documentation

7.01g Check Claim Status/Explanation of Benefits

7.01h View EFT Claim Payment Details

 

	
7.01a

	

Report Defaults and 

Default Status

	
Select File/Update a Default in the MGIC/Link main menu to:

■  notify us that a borrower is 2 consecutive payments past due by filing a Notice of Delinquency (1.02).

■ report the status of loans in default and your servicing efforts to remedy default as required by the Master Policy.

 

	
7.01b

	
Submit Loss Mitigation Workouts

	
Request approval and submit documentation for loss mitigation workouts that do not meet MGIC Delegated Guidelines. 

■ Select Loan Modification in the MGIC/Link main menu to submit requests for approval for loan modifications that do not meet MGIC Delegated Guidelines (2.05a). 

■ Select Short Sale in the MGIC/Link main menu to: – submit the results of the MGIC Financial Analysis for loans that meet MGIC Delegated Guidelines (2.06a); 

– request approval and submit documentation for short sales that do not meet MGIC Delegated Guidelines (2.06d); 

– provide additional information on short sale requests pending approval; AND 

– request an extension approval.

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 7 – Default Servicing Tools

page 40

 

■ Select Deed in Lieu in the MGIC/Link main menu to submit requests for approval and supporting documentation for a deed in lieu that does not meet MGIC Delegated Guidelines (2.06d). 

■ Select Other Workout Types in the MGIC/Link main menu to submit requests for approval for the following workout types: 

– foreclosure sale postponement (2.01); 

– forbearance (2.02); 

– repayment plans (2.03); AND 

– other unlisted programs that require MGIC’s review and approval.

 

	
7.01c

	

Report HAMP Modifications for GSE 

and Non-GSE Loans

	
Submit your completed MICA HAMP Reporting Template. 

■  Select HAMP Reporting in the MGIC/Link main menu.

 

	
7.01d

	
Report Loan 

Modifications

	
■  Report individual or multiple loan modifications that meet MGIC Delegated Guidelines (2.05a).. 

■ Select Loan Modification in the MGIC/Link main menu to report individual modifications or upload the Loan Modification Submission Spreadsheet.

	
7.01e

	
File a Claim

	
The most secure, expedient means to file an individual claim is via MGIC/Link Servicing.

■  Select File a Claim in the MGIC/Link main menu and enter the MGIC Certificate Number.

 

The online claim form opens, prefilled with servicer, mortgage insurance, borrower and property location information. The MGIC/Link form also calculates totals for you. You have the option to save your work and finish at your convenience. Once complete, submit the claim to MGIC.

	
7.01f

	

Uploading 

Documentation

	
Upload documentation through MGIC/Link Servicing: 

■  prior to filing a claim OR

■ immediately after filing a claim OR 

■ upon MGIC’s request for any missing or additional documentation.

■ Select Claim Documents in the MGIC/Link main menu.

 

Also, once MGIC has notified you that we have registered your claim, use the Claim Documents feature to:

■  access specific missing documents you need to submit on a per-claim basis; AND

■ create your own reports containing all of your claims with outstanding documents requested.

View our MGIC/Link Claims Pending Doc Request training tutorial.

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 7 – Default Servicing Tools

page 41

 

	
7.01g

	
Check Claim Status/ Explanation of Benefits

	
Regardless of how you file a claim, you can check claim status securely and easily through MGIC/Link Servicing. Once a claim has been settled, you can download an Explanation of Benefits. 

■ In the MGIC/Link main menu, select Policy Inquiries. 

■ Provide the certificate number, a borrower Social Security Number or Servicer Number and select Claim as your Inquiry Type.

 

	
7.01h

	
View EFT Claim Payment Details

	
View payment details online the same day funds are transferred. Select the Reports tab to access: 

■  EFT Reconciliation Reports with daily totals of funds transferred;

■  individual claim payments that comprise the total transfer; AND

■ Explanation of Benefits (EOB) statements for each claim.

 

7.02 Automated Default Reporting

Report defaults (1.02) and their status (1.03) to MGIC electronically via Automated Default Reporting (ADR) to reduce errors, increase efficiencies and eliminate paper. 

 

How ADR works 

 

Shortly after the 15th of every month, your loan data base is scanned. During the scan, information about delinquent MGIC loans is gathered from your online collection system and loaded into an electronic file. Once the information is loaded, you deliver the file to MGIC, where the information is added to our computer system. 

 

Report all MGIC loans that are 2 or more months in default until either the loan becomes current or a claim is filed. Reported delinquencies include new defaults, updates or cures on previously reported delinquent loans and foreclosures. 

 

How to Get Set Up on ADR 

 

Step 1: Portfolio review 

 

We recommend that a portfolio review be performed on all of your MGIC loans. This review ensures that your loan files – and ours – are accurate. To assist you, we’ll be happy to provide a file or listing of your current MGIC loans. 

 

Step 2: Data verification 

 

Once the review is complete and any discrepancies are resolved, Automated Default Reporting begins. To make sure your delinquent loans are accurately and completely transmitted, we verify your data – typically for the first two file submissions. During this time, you continue to report your delinquencies manually.

	To Sign Up	To get set up with ADR, contact MGIC eCommerce Services, ecommerce_services@mgic.com or 1-800-558-9900.

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

MGIC’s Default Servicing Guide

Section 7 – Default Servicing Tools

page 42

 

7.03 Secure File Transfer

 

Replace faxing and overnight document delivery and protect the privacy of information you send with MGIC’s Secure File Transfer. 

All data transmissions are encrypted using the strongest available industry standards

— Secured Socket Layer (SSL). 

Send and receive any file type (e.g., PDF, XLS, DOC, etc.).

 

	To Sign Up	Register for your MGIC Secure File Transfer login ID and password at www.mgic.com/signup.

	
Support

	
View or print SFT Step-by-Step instructions.

View our Send and Receive Files through Secure File Transfer training tutorial.

7.04 Electronic Funds Transfer (EFT)

Expedite MGIC Claim Payments with Electronic Funds Transfer. With EFT, as soon as MGIC completes a claim, funds are transferred directly into your account in one consolidated payment. EFT eliminates waiting for a check in the mail. MGIC will provide an EFT Reconciliation Report on the MGIC/Link Servicing site listing all loans receiving payment within one business day prior to deposit. 

 

To get started

 

Complete and fax an Authorization for Electronic Receipt of Payment form to MGIC’s Cash Management Department, (414) 347-6354. The form is available at www.mgic.com > Servicing > Default Servicing > Guides and Forms. 

Upon receipt, MGIC will: 

■ test to ensure the successful transfer of future funds; 

■ work with you to set up EFT service for your designated branches or offices; 

■ notify you of the date EFT claim payments will be activated; AND 

■ provide you with instructions for accessing payment detail via MGIC/Link Servicing (7.01h).

 

Questions? Contact MGIC Customer Service, customer_service@mgic.com or 1-800-424-6442.

Mortgage Guaranty Insurance Corporation

MGIC Plaza, Milwaukee, Wisconsin 53202 • www.mgic.com

© 2010-2013 Mortgage Guaranty Insurance Corporation. All rights reserved.

71-41067 6/13Exhibit 10.1

AMENDMENT NO. 3 TO MANAGEMENT AGREEMENT

 

THIS AMENDMENT NO. 3 TO MANAGEMENT AGREEMENT is dated as of August 21, 2013 and is by and between Baltic Trading Limited, a Marshall Islands corporation (the "Company"), and Genco Shipping & Trading Limited, a Marshall Islands corporation (the "Manager") and is entered into pursuant to Section 2.8 of the Management Agreement between the Company and the Manager dated as of March 15, 2010 (the "Agreement") solely for purposes of updating Schedule A to the Agreement.

Schedule A to the Agreement is hereby amended and restated in its entirety as follows:

SCHEDULE A

VESSELS

(As of August 21, 2013)

This Schedule may be updated from time to time by the parties in accordance with Section 2.8.

 

	
Vessel

	
Capacity

(dwt)

	
Built

	
Current

Employment

	
Current

Charterer

	
Expiration

of Charter

	
Flag

	
Capesize

	
 

	
 

	
 

	
 

	
 

	
 

	
Baltic Bear

	
177,717

	
2010

	
Spot market-related time charter

	
Swissmarine Services S.A.

	
February 2015

	
Marshall Islands

	
Baltic Wolf

	
177,752

	
2010

	
Spot market-related time charter

	
Cargill International S.A.

	
May 2014

	
Marshall Islands

	
Supramax

	
 

	
 

	
 

	
 

	
 

	
 

	
Baltic Leopard

	
53,447

	
2009

	
Spot market-related time charter

	
Resource Marine PTE Ltd. (part of the Macquarie group of companies)

	
February 2014

	
Marshall Islands

	
Baltic Panther

	
53,351

	
2009

	
Spot pool

	
Bulkhandling Handymax A/S Pool

 

	
May 2014

	
Marshall Islands

	
Baltic Cougar

	
53,432

	
2009

	
Spot pool

	
Bulkhandling Handymax A/S Pool

	
May 2014

	
Marshall Islands

	
Baltic Jaguar

	
53,474

	
2009

	
Spot market-related time charter

	
Resource Marine PTE Ltd. (part of the Macquarie group of companies)

	
April 2014

	
Marshall Islands

	
Handysize

	
 

	
 

	
 

	
 

	
 

	
 

	
Baltic Wind

	
34,409

	
2009

	
Spot market-related time charter

	
Cargill International S.A.

	
September 2013

	
Marshall Islands

	
Baltic Cove

	
34,403

	
2010

	
Spot market-related time charter

	
Cargill International S.A.

	
February 2014

	
Marshall Islands

	
Baltic Breeze

	
34,386

	
2010

	
Spot market-related time charter

	
Cargill International S.A.

	
July 2014

	
Marshall Islands

	
Baltic Fox(1)

	
31,883

	
2010

	
Spot pool

	
Clipper Logger Pool(2)

	
September 2015

	
Marshall Islands

	
Baltic Hare(1)

	
31,887

	
2009

	
Spot pool

	
Clipper Logger Pool(2)

	
September 2015

	
Marshall Islands

 

		(1)	These vessels have not yet been delivered to the Company but will be subject to the engagement under the Agreement upon such delivery.

		(2)	These chartering arrangements are to commence following delivery of the vessel to the Company.

Except as amended hereby, the Agreement remains in full force and effect.

[Signature page follows.]

IN WITNESS WHEREOF, the parties hereto have executed this Amendment to Management Agreement as of the date first set forth above.

 

	
BALTIC TRADING LIMITED

	
 

	
GENCO SHIPPING & TRADING LIMITED

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 /s/ John C. Wobensmith

	
 

	
By:

	
 /s/ John C. Wobensmith

	
 

	
Name:  

	
John C. Wobensmith

	
 

	
Name:  

	
John C. Wobensmith

	
 

	
Title:

	
President and Chief Financial Officer

	
 

	
Title:

	
Chief Financial Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00223-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00223-of-00352.parquet"}]]