| Submitting Loss Claims with a Portion of the Private Mortgage Insurance Proceeds Deferred |
Certain private mortgage insurance companies are settling their private mortgage insurance and supplemental mortgage insurance claims with a combination of cash proceeds paid upfront and a deferment of the balance of the claim proceeds. This deferred portion of the claim settlement is commonly known as a deferred payment obligation or “DPO.”
The mortgage insurance companies currently settling their claims with a combination of upfront cash proceeds and a DPO are Triad Guaranty, PMI Mortgage Insurance Co. (PMI) and Republic Mortgage Insurance Company (RMIC).
With PFI Notice2013-1, dated March 22, 2013, the MPF Program announced changes to the realized loss calculation methodology and revisions to the Calculation of Realized Loss form (Form SG332) for the submission of realized loss (gain) claims where the mortgage insurance company’s claim settlement is a combination of upfront cash proceeds and a DPO.
Click here to read the entire PFI Notice. | |
