Mortgage Guaranty Insurance Corporation (MGIC) has introduced an updated Master Policy. The new policy provides greater clarity and transparency on all aspects of the mortgage insurance process – from origination through servicing and claim settlement. It combines the coverage requirements of Fannie Mae and Freddie Mac (collectively, the GSEs) with the ability to upgrade to 12-month rescission coverage protection under MGIC's Gold Cert program, available through all submission options.
"Over the past several years the mortgage industry has gone through significant changes," explains MGIC's president and chief operating officer, Patrick Sinks. "During it all MGIC has remained steadfast in our commitment to providing our customers industry leading products, like Gold Cert, and extraordinary customer service. Our new policy reemphasizes our partnership with the lending community and maintains MGIC's strong focus on quality. We will work with customers to make the transition to our new Master Policy as simple and easy as possible."
MGIC collaborated with the GSEs to ensure that loans insured under the new Master Policy would be eligible for sale to them. As a result of this collaboration the new Master Policy has been approved by both GSEs and has been filed with the state insurance regulators. MGIC currently expects the new policy to be effective July 1, 2014. The final effective date is subject to state insurance regulators and coordination with the GSEs and will be communicated to lenders and posted on MGIC's website.