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Servicing Guide
Radians Default and Claims Servicing Guide has been revised with the intention of incorporating and
explaining all current default and claims process policies. The Guide has also been reorganized to
ensure that content is presented in a clear and helpful manner.
Bookmarks are displayed on the left side of the Adobe Acrobat Reader. All eligibility topics can
beaccessed by simply expanding and clicking on the bookmark of the section, chapter or subject
matter you wish to review.
In addition, hyperlinks are provided to take you to another area within the guidelines where you
canfind additional information on a particular topic. If you click a hyperlink, you may return to your
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Should you have any questions about Radians default and/or claims servicing guidelines, please
contact our Customer Care team at customercare@radian.biz 877.RADIAN1 (723.4261) or your
Radian representative.
Effective:
August 2014 Rev 20140729
Effective:
August 2014
Effective:
August 2014
The Guide outlines Radians practices, requirements and procedures in detail, and includes a
review of:
Loss mitigation options and corresponding delegated authority;
Factors which impact and influence the claims process, as well as the details necessary
to navigate this process.
In addition to the information in this Guide, please consult Radians Master Policy and any
endorsements or Radians Pool Policy as applicable, to identify specific terms and limiting conditions
under which Radian mortgage insurance is issued. These documents provide additional details
regarding the insured lenders and Radians respective rights and responsibilities.
This Guide is reviewed and updated on a regular basis. In the event a policy or process change is
implemented prior to the next scheduled Guide revision, the details will be posted on our website at
www.radian.biz.
Effective:
August 2014
Effective:
August 2014
A. Default Servicing
A servicer must employ a well-documented control system for those areas that represent the
greatest risk exposure and potential for losses. A servicer must establish a system, compliant both
with their own internal requirements and applicable GSE requirements, for successfully servicing
delinquent mortgage loans:
1. Confidentiality of Radian Practices and Procedures
It is not appropriate to disclose to any uninsured third-party the conditions under which Radian
is willing to waive any rights established under the Master Policy and/or to accept a claim via
the approval of a requested workout. The borrower, real estate agent, borrowers attorney and
other uninsured third parties are not to be provided with communications between Radian and
its insured or the servicer representing the insured. Radians feedback and communications are
confidential and meant for the servicer and/or the insured only.
2. Communication with the Borrower
Direct and relevant communication with the borrower is identified within the industry as a
bestpractice for servicing delinquent mortgages. The servicers ability to manage the call
andinfluence borrower payment behavior after right party contact is critical.
3. Delinquency Prevention and Management
Radian supports all reasonable delinquency prevention and management efforts which help
toavoid or cure a delinquency as quickly as possible. These practices should align with those
identified by Radian as providing Highest Standard of Servicing.
Link to Highest Standard of Servicing Performance
4. Collection Procedures
The servicer is expected to follow all applicable collection procedures allowed by law and
required to meet Highest Standards of Servicing to bring delinquent mortgage loans current
asquickly as possible. Collection procedures are specific to each stage of delinquency and
Radian supports servicer collection practices that maximizes re-performance of all defaulted
loans and at a minimum align with what is detailed within the GSE servicing guide.
5. Bankruptcy Proceedings
In the event a borrower files for protection under bankruptcy, the servicer must take all actions
necessary to protect the security investment over the course of the bankruptcy proceedings.
In accordance with the GSE requirements, the servicer must report the initiation of bankruptcy
proceedings to Radian, even if the mortgage loan is not delinquent.
Effective: Link to Reporting
August 2014
B. Loan Delinquency
Radian requires that the servicer report specific delinquent loan information in order to
predictfutureclaim filings.
1. Initial Notification
The Notice of Default (NOD) is to be used at the time of initial notification.
Link to Notice of Default
Seasoned-Payment Defaults
The borrower fails to make three Report no later than day75inthe delinquency.
consecutivepayments after the first year
oftimely loan payments.
Effective:
August 2014
3. Report Delivery
The initial NOD and recurring monthly reporting of the MDR may be delivered via electronic
file transmission, computer tape or by an individual report sent to Radian.
For NOD submissions other than Electronic Data Interchange (EDI), Radian will provide the
MDR to the lender each month until the loan cures, pays off, or a claim is filed. The completed
form should then be returned to nodreport@radian.biz.
If prior arrangements have been made with Radian to report loans in default by electronic
filetransmission, Radian will not send MDRs to the lender. The lender can choose to transmit
an electronic file each month, email a text file to nodreport@radian.biz, or drop the file in an
inbound designated folder for FTP transmission no later than the last day of each month. For
specific instructions before choosing this option, please contact Radians Default Reporting
Department at nodreport@radian.biz.
Effective:
August 2014
The following table outlines the specific modification options available for non-performing
loans.* If a loan is eligible for more than one modification program, we encourage the
servicer to use the program that gives the borrower the best mortgage insurance (MI) rate
available. Submit allforms and/or spreadsheets via secure email to certmods@radian.biz.
Radian Radian Rate and Submission
Program Description
Policy Coverage Applied Method(s)
Non-GSE HAMP Making Homes Affordable (MHA) Delegated Original rate and Single Loan:
HAMP
Modification
Programs Freddie Streamlined Modification Delegated
* Radian defines a non-performing loan as one that is currently in default or in imminent risk of default, based on the
Effective:
NPV waterfall identified in Treasurys documentation.
August 2014
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August 2014
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August 2014
3. Charge Offs
A Charge Off is not a claimable event. The insured must obtain clear title to the property
tohave a valid claim. Upon receiving a servicers Charge Off request, rather than decline
therequest, Radian may consider proposing a good faith, reduced claim settlement and
accept aclaim via Charge Off. Written acceptance of any proposed settlement is required
fromthe insured (or their agent the servicer) with the understanding the agreed upon amount
paid byRadian is in full and final settlement of its insurance obligation under the subject
Certificateof Insurance.
Please contact your assigned Radian Loss Mitigation Specialist or Customer Care at
customercare@radian.biz, 877.RADIAN1 (723.4261) and ask for the Loss Mitigation team
ifyou wish to discuss a Charge Off situation.
4. Foreclosure Sale
Radian expects that foreclosure proceedings be initiated in accordance with the requirements
of the Master Policy in the event loan retention or other liquidation workout options are not
appropriate.
Link to Foreclosure Proceeding
Effective:
August 2014
1. Limitations of Coverage
Prior to any of the following actions being taken, it is necessary to contact Radian toobtain
prior consent in order to ensure continued coverage ofthe loan. Failure to obtain Radians
prior consent may result in termination of coverage pursuant to the terms of Radians
MasterPolicy.
Any material change or modification of the terms of the Loan including, but not limited to,
the UPB interest rate, term or amortization schedule (except modifications specifically
provided for in the Loan documents, and permitted without further approval orconsent
ofthe insured).
Any release of a borrower from liability for the loan, including any loan principal
forgiveness (certain specific modification principal forgiveness may be completed using
delegated authority).
Linkto Delegated Retention Workout Options Table
Any assumption of liability for the loan with release of the original borrower from liability.
Any release of the collateral or any partial release of the collateral.
Any change in the character or use of the property (for example, the conversion of a
single-family home into a commercial property).
Any transfer or sale of the servicing of the loan to a company not approved* by Radian.
*Approval requires the servicer to have an active Master Policy with Radian.
During our review of a Claim, Radian will investigate other factors including:
Insufficient servicing
Liquidation policies
Failure to comply may result in the denial or curtailment of claims.
Effective:
August 2014
A. Claims Filing
Radians Master policy provides timelines for claims to be filed. Once the Claim filing has been
received, Radian will request, within twenty (20) days, the documents necessary to perfect the
Claim directly from the servicer.
1. When to File
a. Primary Insurance
Primary Insurance Claims must be filed no later than sixty (60) days after conveyance of
borrower title, either through foreclosure proceedings, or by way of short sale or deed in
lieu of foreclosure. Please note that the failure to file a Perfected Claim within one (1) year
of transfer of borrower title, shall release Radian of any liability under the Certificate.
The claim filing perfection window begins at the onset of one of the following conditions:
Borrower signing of the deed for a voluntary conveyance
Completion of a Foreclosure Sale
Settlement of a Third Party Foreclosure Sale
Settlement of a Short Sale
Redemption States
Redemption Expiration date if the claim is filed after the expiration
of the redemption period.
Foreclosure Sale Held date if the claim is filed prior to the expiration
of the redemption period.
b. Pool Insurance
Prior to submission of a Pool Insurance Claim, Radian must approve the REO marketing
plan, including listing price, adjustments, etc. Any modification to the marketing plan
mustbe approved by Radian. Submissions for pool insured loans can be emailed to
reoapprovals@radian.biz. The final sale must be approved along with verification of
consistency with the prior Radian approved REO marketing plan.
Link to REO Pool Marketing Request Template
As a guideline, a claim is to be filed with Radian no later than sixty (60) days after
closing on the sale of the REO property. A copy of the settlement statement from the sale
of the REO property must be included with the claim. Please refer to Special Risk
policy covering the certificate for the specific claim filing deadline.
Effective:
August 2014
Effective:
August 2014
2. Claim Submission
If the servicer does not participate in Radians Early Ask program, or documents have not
yetbeen received, in order to Perfect a Claim, Radian will order or follow up on missing
documentation. The three components of a perfected Claim are:
the Origination and Closing documents used in the original lending decision;
servicing documents verifying theloan was serviced appropriately; and
the Claim-Specific Documents and explanations to verify the claimableevent.
Effective:
August 2014
1. Origination Documents
All origination documents should be provided in order to Perfect a Claim. Following is a table
outlining the most commonly requested origination documents that may be critical to our review:
Categories/Documents
Application (1003)
Signed initial application
Signed final application
All Underwriting Approval Documents
Final 1008
Lender Loan Approval or Underwriting worksheet with conditions
AUS Findings (and required supporting documentation)
Assets
Bank Statements
Brokerage Statements
Retirement Statements
401K Statements
Verification of Deposit
Gift funds source (gift donors bank statement or copy of cancelled check)
Effective: Gift Letter
August 2014
2. Servicing Documents
The servicer is required to document the actions taken to resolve a default situation or
minimizethe loss incurred as a result of default, ensuringservicer activities were reasonable
and consistent with industry standards for default servicing and in compliance with Radians
MasterPolicy.
Providing a clear understanding of the servicing actions taken by the servicer will eliminate
theneed for this information to be exchanged during an appeal of a curtailmentdecision.
Actions or lack of actions taken by the servicer will determine which documents will
berequested and what information will be reviewed.
Following Radians recommended course of action will result in a streamlined and efficient
Comprehensive Document Request, reducing the number of documents requestedand
accelerating the claim process.
Effective:
August 2014
Effective:
August 2014
As outlined in Condition 13 of the Master Policy, Radian may take up to one hundred twenty
(120) days after settlement due date to conduct a Claims investigation.
B. Results of Investigation
As a result of the investigation one of the following actions are taken:
The Claim proceeds to be processed for payment (may include a curtailment).
A Rescission is issued.
If the investigation reveals inaccuracies in the application for insurance, underwriter
negligence, or other deficiencies in the underwriting process, Radian may conclude that
rescission of coverage is warranted. An Intent to Rescind letter (ITR) is sent to the lender
providing a description of the facts supporting the decision.
The ITR will specify a period of time for an appeal prior to the rescission being finalized. If
Radian does not hear back in time a final Rescission letter will be issued along with a refund
of premiums.
Link to Dispute Resolution Rescission Appeals
Denial of Coverage due to policy violation.
Effective: Link to Dispute Resolution Policy Violation Denials
August 2014
Effective:
August 2014
Radian will pay a primary coverage claim within sixty (60) days of claim perfection. If additional
requirements exist, the claim payment period will be suspended until the requirement is cured.
Reasons for suspension include:
1. Additional Documentation
Should Radian require additional information or documentation upon claim filing, or the
disposition of the subject property is effected by an approved sale, Radian will suspend the
claim settlement period until such information is received subject to any conditions set forth in
Radians Master Policy of Insurance.
Effective:
August 2014
Radians Claim liability will be calculated by determining the sum of the unpaid principal balance;
any unpaid accumulated interest due under the loan (excluding late charges and penalties) up to
the date of claim submission but not exceeding two (2) years; the amount of any acceptable
advances made by the insured less the sum of any unacceptable advances and/or the net
proceeds of an Approved Sale.
1. Claims Adjustments
a. The following allowable expenses may be included in a Claim calculation:
Hazard insurance premiums paid after default, pro-rated to sixty (60) days after foreclosure.
Real estate taxes accrued or payable after default and prior to foreclosure, pro-rated
tosixty (60) days after foreclosure.
Reasonable and normal disbursements incurred in foreclosure (attorney fees are
limitedto3% of UPB and interest).
Reasonable and normal property preservation expenses incurred after default and sixty
(60) days from foreclosure.
Reasonable and normal eviction expenses (cash for keys is limited to $1,500 without
prior approval).
Condominium fees accrued will be pro-rated from the last paid installment to sixty (60)
days after foreclosure sale.
If a property is subject to a redemption/confirmation period, advances will be pro-rated to
the date of the claim or sixty (60) days after redemption/confirmation, whichever comes first.
b. The following advances are not allowed to be included in a Claim calculation:
Insurance premiums accrued and payable prior to default and after sixty (60) days
fromtheforeclosure sale.
Property preservation expenses prior to default and after sixty (60) days of foreclosure.
Trip charges.
MI premiums.
Penalties and interest owed on past due taxes, condominium fees, and municipalcharges.
Effective: Non-approved changes to the terms on an approved sale resulting in an unreasonable
August 2014 reduction in net proceeds.
Effective:
August 2014
A. Supplemental Claims
Radian will process supplemental claims provided the supplemental claim is received within
ninety(90) days of the original claim payment for the following reasons:*
1. Allowable advances and expenses incurred but not documented at the time of the
initialclaim filing.
2. Certain claimable expenses that were disallowed on the original claim payment.
To File a Supplemental Claim:
EDI Submit supporting documents via email to disputeresolution@radian.biz.
Email Submit the Mortgage Insurance Claim for loss with any supporting documentation
todisupteresolution@radian.biz.
Settlement of Supplemental Claims
Radian will issue payments for approved supplemental claims via check or electronic wire of
funds. Payments are made on a predetermined monthly schedule and typically occur twice-a-
month. An Explanation of Benefit (EOB) will be available for all decisions via MI Online once
settlement is complete.
*Servicing Deficiency or Foreclosure Delay adjustments are considered Supplemental Claims, but are not
held to the timeline standard. These types of supplemental claims are held to the standards under the
Servicing Performance Review section.
Radian requires a Claim Submission Detail (CSD) be on file or submitted for all SPR Appeals.
Thedocument can be obtained on our corporate web-site.
Link to CSD
Effective:
August 2014
C. Rescission Appeals
The Rescission Appeal team ensures that all Rescission and Intent-to-Rescind Appeal decisions
aremade in compliance with:
Radians Master Policy for Primary coverage; or
the Special Risk Contract for Pool coverage that is applicable to the certificate.
The basis for the review would include but not limited to:
Respective underwriting guidelines
Industry standards
Radian will consider Rescission appeals subject to the Limitations of Action clause and other
timeconstraints listed in the applicable policy.
Link to Radians Master Policy
To file an appeal, submit all evidence, documents, exhibits and relevant guidelines tosupport
reinstatement of coverage via email to disputeresolution@radian.biz.
Settlement of a Rescission Appeal
Radian will issue a response letter to the servicer via email (also available via MI Online on the
Correspondence tab) explaining Radians decision in detail. Approved appeals will be processed
for reinstatement of coverage (if applicable). Radian will indicate in the response letter if a return
of premium is required to reinstate coverage.
Effective:
August 2014
Default Reporting
nodreport@radian.biz
Claims
General inquiries/status: claims.department@radian.biz
Claims documents: claimsdocumentrequest@radian.biz
Appeals/Supplemental Claim
disputeresolution@radian.biz
Loss Mitigation
To discuss non-delegated loan retention workouts and liquidation options,
please contact your dedicated Loan Specialist.
REO Acquisitions
Primary Insured Loans: reoprimaryapprovals@radian.biz
Pool Insured Loans: reoapprovals@radian.biz
Effective:
August 2014
41 Default and Claims Servicing Guide | Radian Default and Claims Contact Information
Radian Guaranty Inc.