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Default and Claims

Servicing Guide

Effective August 2014


Radian Revision notes
Default and
ClaimsServicing
Guide
Revisions for August 2014

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
previous place by pressing down the alt (Microsoft) or command (Macintosh) key and the back arrow
key at the same time on your keyboard.

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

2 Default and Claims Servicing Guide | Revision notes


Radian Table of Contents
Default and
ClaimsServicing
Guide
Revision notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 5 Claim Eligibility . . . . . . . . . . . . . . . . . . . . . . . 22
Revisions for August 2014 . . . . . . . . . . . . . . . . . . . . 2 A. The Terms and Limiting Conditions
Navigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 ofRadians Master Policy . . . . . . . . . . . . 22
1. Limitations of Coverage . . . . . . . . . . . . . . . 22
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2. Exclusions from Coverage . . . . . . . . . . . . . 22
1 Servicing Standards . . . . . . . . . . . . . . . . . . . . 6 3. Inability to Evaluate a Claim . . . . . . . . . . . 23

A. Highest Standard of B. Loan Compliance to Underwriting


Servicing Performance . . . . . . . . . . . . . . . 6 Guidelines and Eligibility . . . . . . . . . . . . . 23
1. Delegated and Non-delegated
2 Default Servicing . . . . . . . . . . . . . . . . . . . . . . 7 Underwriting . . . . . . . . . . . . . . . . . . . . . . . 23
A. Default Servicing . . . . . . . . . . . . . . . . . . . . 7 2. Delegated Mortgage Insurance . . . . . . . . 23
1. Confidentiality of Radian C. Other Claim Restrictions . . . . . . . . . . . . . 23
Practices and Procedures . . . . . . . . . . . . . . 7
2. Communication with the Borrower . . . . . . . 7 6 Initiation of a Claim . . . . . . . . . . . . . . . . . . . 24
3. Delinquency Prevention A. Claims Filing . . . . . . . . . . . . . . . . . . . . . . . 24
and Management . . . . . . . . . . . . . . . . . . . . 7 1. When to File . . . . . . . . . . . . . . . . . . . . . . . 24
4. Collection Procedures . . . . . . . . . . . . . . . . . 7 2. Claims Filing Format . . . . . . . . . . . . . . . . . 25
5. Bankruptcy Proceedings . . . . . . . . . . . . . . . 7
6. Foreclosure Proceedings . . . . . . . . . . . . . . . 8 7 Perfecting a Claim . . . . . . . . . . . . . . . . . . . . 26
1. Early Ask (Pre-Claim) . . . . . . . . . . . . . . . . . 26
3 Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 2. Claim Submission . . . . . . . . . . . . . . . . . . . . 26
A. Event Reporting . . . . . . . . . . . . . . . . . . . . 10 A. Documentation Request
B. Loan Delinquency . . . . . . . . . . . . . . . . . . 10 Associated with Perfecting a Claim . . . . 26
1. Initial Notification . . . . . . . . . . . . . . . . . . . . 10 1. General Document Request . . . . . . . . . . . 26
2. Recurring Reporting Requirements . . . . . . 11 2. Comprehensive Document Request . . . . . 27
3. Report Delivery . . . . . . . . . . . . . . . . . . . . . 11 3. Final Comprehensive
Document Request . . . . . . . . . . . . . . . . . . . 27
C. Loan Workout/
Modification Reporting . . . . . . . . . . . . . . 11 B. Documents Associated
with Claim Perfection . . . . . . . . . . . . . . . 27
4 Loss Mitigation . . . . . . . . . . . . . . . . . . . . . . . 12 1. Origination Documents . . . . . . . . . . . . . . . 27
A. Retention Activities . . . . . . . . . . . . . . . . . 13 2. Servicing Documents . . . . . . . . . . . . . . . . . 28
1. Reinstatements . . . . . . . . . . . . . . . . . . . . . 13 3. Claims-Specific Documentation
2. Repayment Plans . . . . . . . . . . . . . . . . . . . 13 andInformation . . . . . . . . . . . . . . . . . . . . . 29
3. Forbearance Plans . . . . . . . . . . . . . . . . . . . 13
4. Loan Modifications . . . . . . . . . . . . . . . . . . 13 8 Claims Investigation . . . . . . . . . . . . . . . . . . 31
5. Claim Advance A. Types of Investigations . . . . . . . . . . . . . . 31
(Second Look Program) . . . . . . . . . . . . . . . 15 1. Origination . . . . . . . . . . . . . . . . . . . . . . . . . 31
B. Liquidation Workout (Short Sale 2. Servicer Performance Review (SPR) . . . . . 32
and Deed in Lieu of Foreclosure) . . . . . . 16 3. Short Sale Review (SSR) . . . . . . . . . . . . . . 32
1. Short Sales (Pre-foreclosure Sale) . . . . . . . 16 B. Results of Investigation . . . . . . . . . . . . . . 32
2. Deed in Lieu (Delegated) . . . . . . . . . . . . . 18 1. Factors in Rescissions . . . . . . . . . . . . . . . . . 33
3. Charge Offs . . . . . . . . . . . . . . . . . . . . . . . 21 2. Legacy Factors Guidelines for Loans
4. Foreclosure Sale . . . . . . . . . . . . . . . . . . . . 21 Originated before 2009 . . . . . . . . . . . . . . 33

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August 2014

3 Default and Claims Servicing Guide | Table of Contents


Radian 9 Claim Settlement . . . . . . . . . . . . . . . . . . . . . 34 10 Dispute Resolution . . . . . . . . . . . . . . . . . . . . 38
Default and 1. Percentage of Coverage Option . . . . . . . 34 A. Supplemental Claims . . . . . . . . . . . . . . . . 38
2. Property Acquisition
ClaimsServicing B. Servicing Performance Review (SPR)
Access to the Property . . . . . . . . . . . . . . . . 34
Guide Curtailment Appeals . . . . . . . . . . . . . . . . 38
3. Pre-Settlement Approved Sale . . . . . . . . . . 34
C. Rescission Appeals . . . . . . . . . . . . . . . . . . 39
A. Suspension of Claim Settlement . . . . . . . 34
1. Additional Documentation . . . . . . . . . . . . . 34 D. Denial Appeals . . . . . . . . . . . . . . . . . . . . . 40
2. Access to the Property . . . . . . . . . . . . . . . . 34 1. Policy Violation Denials . . . . . . . . . . . . . . 40
3. SIU and Default 2. Missing Document Denials . . . . . . . . . . . . 40
Servicing Investigations . . . . . . . . . . . . . . . 34 Radian Default and Claims
4. Late Payment . . . . . . . . . . . . . . . . . . . . . . . 35 ContactInformation . . . . . . . . . . . . . . . . . . . 41
B. Timing of Claim Settlement Under
Structured Pool Policies . . . . . . . . . . . . . . 35
C. Calculation of Claim Liability . . . . . . . . . 35
1. Claims Adjustments . . . . . . . . . . . . . . . . . . 35
2. Payment of Claim/
Explanation of Benefits (EOB) . . . . . . . . . . 36
3. Return of Paid Claim Funds . . . . . . . . . . . . 36
4. Servicing Performance Review (SPR)
Curtailment . . . . . . . . . . . . . . . . . . . . . . . . . 36

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4 Default and Claims Servicing Guide | Table of Contents


Radian Introduction
Default and
ClaimsServicing
Guide
This guide is intended to help loan servicers meet Radian's requirements for servicing delinquent
or defaulted loans with Radian mortgage insurance coverage.

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

5 Default and Claims Servicing Guide | Introduction


Radian 1 Servicing Standards
Default and
ClaimsServicing
Guide
Radian mortgage insurance is issued under the terms and conditions of Radians Master Policy. This
Policy specifically requires that those responsible for servicing mortgage loans adhere to the highest
standard of servicing performance. The following guidance is intended to ensure Radians servicing
performance expectations are met.

A. Highest Standard of Servicing Performance


Radian defines the term Highest Standard of Servicing Performance as:
Utilizing industry best practices. Implementing and maintaining proven processes and
procedures used to minimize losses and maximize opportunities for a borrower to retain
theirhome.
Adherence to applicable requirements of the Federal Housing Finance Authoritys Servicing
Alignment Initiative, as they become effective.
Adherence to all rules and regulations specific to mortgage loan servicing imposed by the
Consumer Financial Protection Bureau (CFPB).
Implied and expressed within, is the servicer obligation to:
comply with the terms and requirements of the applicable Purchase and Sale, Master Servicer,
Servicer or Sub-Servicer contracts (Lender Contract) under which loan servicing is performed;
and
comply with the terms and requirements of applicable government/servicer agreements
suchas, but not limited to, the AG Settlement and resulting legislation.
Radians servicing performance expectations align with those established by GSE published
requirements and/or government mandates. In the event Fannie Mae/Freddie Mac requirements
differ, applicable GSE guidelines apply. Mortgage loans not purchased or securitized by either
Fannie Mae or Freddie Mac, may follow the requirements of either GSE, so long as they are
consistently followed. GSE published servicing policy is readily available and is incorporated
herein by reference without duplicating information. However GSE policy highlights are provided
for subject matter reference.

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August 2014

6 Default and Claims Servicing Guide | Servicing Standards


Radian 2 Default Servicing
Default and
ClaimsServicing
Guide
The efficient and successful servicing of a delinquent loan may minimize the potential loss resulting
from a borrower default.
Claim eligibility is contingent upon existence of the following controls/procedures and execution of the
following tasks in compliance with the Master Policy, GSE guidelines and certain timeline requirements.

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

7 Default and Claims Servicing Guide | Default Servicing


Radian Bankruptcy Management Process
Default and A servicer must have GSE compliant procedures in place to manage bankruptcies, including a
ClaimsServicing system to control and monitor bankruptcy proceedings. A servicer must document all required
Guide actions were taken to manage a specific bankruptcy in a timely and appropriate manner.
6. Foreclosure Proceedings
In the event loan retention or other liquidation workout options are not appropriate, Radian
expects that foreclosure proceedings be initiated in accordance with the requirements of the
Master Policy. Failure to commence appropriate proceedings in a timely manner may result
ina reduction or denial of claim or cancellation of coverage.
a. Foreclosure Overview
The servicer shall pursue foreclosure proceedings in accordance with appropriate state
laws and GSE guidelines through completion. If the borrower contests the foreclosure or
files suit, Radian must be notified on the Monthly Delinquency Report (MDR).
b. Foreclosure Expectations
Radian expects a timely referral after a borrower defaults, as well as a sustained and
reasonable effort to complete the foreclosure according to state requirements.
The servicer must notify Radian of any extenuating circumstances beyond the
insured/servicers control which prevents a foreclosure action from being completed
within the required time frame as described in the Fannie Mae Compensatory Fees
Allowable Delays guide exhibit (https://www.fanniemae.com/content/
guide_exhibit/foreclosure-timeframes-compensatory-fees-allowable-delays.pdf).
Failure to complete a foreclosure action within these time frames may result in a
curtailment of claim.
c. Foreclosure Mitigation
Foreclosure alternatives should still be considered throughout the entire process. If
appropriate, Radian will authorize postponement or cancellation of foreclosure sales
tomitigate losses. Radian is flexible in the time frames for completion of the foreclosure
proceedings, provided the servicer pursues sustained loss mitigation efforts and
documents how these efforts resulted in the foreclosure delay. If reasonable loss mitigation
efforts and proper documentation are notprovided, Radian will enforce the provisions of the
Master Policy which may result ina curtailment or denial of a claim.
d. Foreclosure Documentation
Radian may request copies of all foreclosure documents, including the pre-foreclosure
title search, foreclosure deed (which need not reflect recordation as long as the deed
iscomplete in every aspect, including signed by a representative of the lien holder,
attorney or officer of the company, and notarized), foreclosure complaints, and other
notices and decrees. Radian may also request information on whether the foreclosure
was judicial or non-judicial and the names of all parties involved in the foreclosure.
Foreclosure sales results are to be sent to Radian at claimsdocumentrequest@radian.biz.
The servicer is encouraged to provide evidence of the foreclosure as soon after the sale
as possible. Foreclosure sales results must include the Radian certificate number, bid
amount, foreclosure sale date, and the successful bidder.
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8 Default and Claims Servicing Guide | Default Servicing


Radian e. Preservation of the Right to Pursue the Foreclosure Deficiency
Default and Upon payment of a claim, Radian may subrogate to the insured lenders right to pursue
ClaimsServicing the borrower for reimbursement of its loss. Provided applicable state law allows recovery
Guide and the cost and time needed to do so is reasonable, the servicer must instruct its
foreclosure attorney to preserve the right to pursue a deficiency.
f. Foreclosure Bid Price
For Radian-insured loans owned by Fannie Mae, please follow Fannie Maes foreclosure
bidding instructions outlined in Fannie Mae Servicing Notice, April 17, 2013
(https://www.fanniemae.com/content/announcement/ntce041713.pdf).
For all other loans, and unless specific foreclosure bidding instructions from Radian are
issued, the insured must bid in accordance with the following state guidelines:
a) In states which provide deficiency recovery rights, or if special circumstances warrant,Radian
may specify a bid outside of the state guidelines in order to preservedeficiency rights.
b) If the recommended bid per state guidelines is less than the uninsured loan amount,
theinsured may bid the uninsured loan amount. Failure to follow proper bidding
instructions may result in an adjustment or denial of claim.

State Bidding Amount Table


State Bidding Amount State Bidding Amount
AK Total Debt MT FMV - Full value*
AL Total Debt NC FMV - Full value*
AR FMV - Full value* ND Total Debt
AZ Total Debt NE FMV - Full value*
CA FMV - Full value* NH FMV - Full value*
CO Total Debt NJ Open @ $100 up to full FMV*
CT FMV - Full value* NM Total Debt
DC FMV - Full value* NV FMV - Full value*
DE FMV - Full value* NY Open @ $500 up to full FMV*
FL Open @ $100 up to full FMV* OH FMV - Full value*
GA FMV - Full value* OK FMV - Full value*
Guam Total Debt OR FMV - Full value*
HI FMV - Full value* PA Open @ Sheriff cost up to full FMV*
IA Total Debt Puerto Rico FMV - Full value*
ID FMV - Full value* RI FMV - Full value*
IL Total Debt SC FMV - Full value*
IN FMV - Full value* SD FMV - Full value*
KS Total Debt TN FMV - Full value*
KY FMV - Full value* TX FMV - Full value*
LA FMV - Full value* UT Total Debt
MA FMV - Full value* VA FMV - Full value*
MD FMV - Full value* VT FMV - Full value*
ME FMV - Full value* WA Total Debt
MI Total Debt WI FMV - Full value*
MN Total Debt WV FMV - Full value*
MO FMV - Full value* WY Total Debt
MS FMV - Full value*
*The bid must not exceed total debt. If the bid calculated according to the table above exceeds total debt,
thenbid total debt. Radian will not require a bid of less than the uninsured loan amount.
Effective:
August 2014 Uninsured Loan amount = Total debt (total debt x % coverage); Total debt = Total debt + attorneys fees and cost

9 Default and Claims Servicing Guide | Default Servicing


Radian 3 Reporting
Default and
ClaimsServicing
Guide
A. Event Reporting
The following events must be reported to Radian as they may impact the collateral securing
theinsured loan.
Borrower death
Hazard Insurance Claim in excess of $10,000 filed on subject property; and
subsequentcompletion, if applicable
Substantial destruction of collateral
Property vacancy
Property condemnation
Title issue adversely affecting the insureds first lien position
Charge Off by the insured or similar event that prevents the servicer from
following appropriate proceedings
Loan Workouts/Modifications
Completed Short Sales/Deeds in Lieu of Foreclosure
Bankruptcy
In the event an occurrence coincides with loan default, this information is expected to be included
in the normal default reporting. For those occurrences which do not coincide with loan default, the
servicer is to report the event to Radian via email at customercare@radian.biz, upon discovery,
nolonger than 30 (thirty) days after it is known.

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

Default Status Initial Notification


Early-Payment Defaults
The borrower fails to make any of the initial Report no later than day45in the delinquency.
12monthly loan payments.

Seasoned-Payment Defaults
The borrower fails to make three Report no later than day75inthe delinquency.
consecutivepayments after the first year
oftimely loan payments.

Current Loan in Jeopardy


Information made available to the Report after a careful review of the facts and circumstances
servicerindicates the loan is in jeopardy surrounding the case.
ofimminent default.

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August 2014

10 Default and Claims Servicing Guide | Reporting


Radian 2. Recurring Reporting Requirements
Default and The Monthly Delinquency Report Document (MDR) is to be used for all subsequent
ClaimsServicing andrecurring reporting.
Guide Link to Monthly Delinquency Report (MDR)
For all defaulted loans reported to Radian, the servicer is required to provide
thefollowinginformation on a recurring monthly basis:
the due date;
specific reason for default;
all contact efforts;
the specific results of any borrower contact; and
any action taken specific to a retention or liquidation workout.
Monthly Delinquency Reports (MDR) must continue until it has been reported that:
a. the borrower is no longer in default;
b. the loan has been paid in full;
c. the servicing has been transferred (servicing transfers should not be reported
aspaidinfullor cures);
d. the borrower has completed the modification trial period and the loan has been
broughtcurrent as a result of a completed modification;
e. applicable bankruptcy/foreclosure proceedings have concluded; or
f. the claim hasbeenpaid.

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.

C. Loan Workout/Modification Reporting


In October 2011, Radian adopted a new industry standardized template for servicers to report
loan workouts. Workout Types include Forbearance, Trial Modification Forbearance, Payment
Plan, Loan Modification (Post Trial Period), Pre-foreclosure Sale, and Deed in Lieu of Foreclosure.
Servicers can contact their Radian Risk Manager to obtain additional guidance on the completion
and submission requirements of the new template.
Link to MI Industry Workout Reporting Template
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August 2014

11 Default and Claims Servicing Guide | Reporting


Radian 4 Loss Mitigation
Default and
ClaimsServicing
Guide
A timely evaluation of foreclosure prevention alternatives is to occur once the servicer determines
adefault occurs or is imminent. Government mandates such as the AG Settlement must be followed
when applicable; otherwise, the servicer is to follow the established GSE workout hierarchy, which
details the preferred order of consideration for the use of special relief measures and foreclosure
prevention options. This includes obtaining relevant borrower personal and financial information to
determine if a retention or liquidation workout is appropriate. The servicer must exhaust all retention
workout options before pursuing a liquidation workout. The following structure represents Radians
preferred hierarchy for Loss Mitigation, which aligns with the GSE hierarchy with the exception of
aClaim Advance and Charge Off:

Retention Workouts 1. Reinstatements


2. Repayment Plans
3. Forbearance Plans
4. Loan Modifications
5. Claim Advance (Second Look Program)
Liquidation Workouts 1. Short Sale (Pre-Foreclosure Sale)
2. Deed in Lieu of Foreclosure
3. Charge Off
4. Foreclosure Sale

Pre Foreclosure Loss Mitigation Methods and Strategies


It is the responsibility of the servicer to:
Perform a thorough review of the circumstances surrounding the default and the results
ofprior servicing activities prior to commencing foreclosure proceeding.
Offer or encourage delinquent borrowers to seek free or low-cost consumer credit
counseling services.
Establish a business process to ensure that all cases are reviewed before referral to
foreclosure and that all reasonable steps have been diligently pursued to avoid the
needforreferral.
Comply with all federal, state and local laws (including statutes, regulations, ordinances,
administrative rules and orders and judicial rulings and opinions that have the effect of law)
that apply to any of its origination, selling, servicing or other business practices (including
theuse of technology) that may have a material effect on the results of servicing activities
including any applicable law that addresses fair housing and equal credit laws.
Comply with conflict of interest/confidentiality responsibilities.
To assist in these efforts, Radian extends to the servicer specific delegated authority to facilitate
theservicers execution of workout options which meet investor/insureds guidelines while providing
borrower assistance to resolve a default situation.
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August 2014

12 Default and Claims Servicing Guide | Loss Mitigation


Radian A. Retention Activities
Default and The following activities, intended to reinstate the loan, are fully delegated to the servicer
ClaimsServicing unlessotherwise noted.
Guide
1. Reinstatements
The servicer should pursue the funds necessary to fully reinstate the loan after making
rightparty contact. This includes all past due amounts including P & I, late charges,
escrowadvances and default-related expenses.
2. Repayment Plans
For default situations where the borrower is not able to fully reinstate the loan, the servicer
may determine that the borrower has the ability to pay portions of the past due amounts over
time in addition to the contractual payment. A repayment plan may be an informal (verbal)
agreement or a formal, written plan.
3. Forbearance Plans
To resolve a default situation that involves a borrower who is temporarily unable to remit all
ora portion of the past due amounts during the hardship period, the servicer may offer
forbearance (suspension of payments due) with a subsequent repayment plan effective at a
specified date. Forbearance arrangements should be formal and agreed upon in writing by
the servicer and borrower.
4. Loan Modifications
Radian supports modification activities whenever the servicer has obtained hardship and
financial information sufficient to determine that the borrower wants to retain ownership of
theproperty and cannot afford the existing mortgage terms.
Radian extends to the servicer full delegated authority to complete a modification based
onthe conditions outlined in the Delegated Retention Workout table that follows.
Link to Delegated Retention Workout Options Table

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August 2014

13 Default and Claims Servicing Guide | Loss Mitigation


Radian Delegated Retention Workout Options
Default and Workout/Coverage Type Delegated Program Requirements
ClaimsServicing Modification terms:
Must result in a payment that is affordable for the borrower
Guide
Does not release any portion of the collateral
Coverage terms:
Coverage extended to the modified unpaid principal balance (UPB) on all
Modification
HAMPmodifications.
Radian will limit coverage to the modified UPB up to the original loan amount
onallnon-HAMP modifications.
For coverage on GSE non-HAMP modifications, please check coverage limits
foreachGSE.
Loan Status:
Must be at least sixty (60) days delinquent.
Premium Payment (monthly/annual):
Calculated from the modified Unpaid Balance (UPB).
Coverage terms:
Modification with Includes any part of principal that was forgiven pursuant to a workout, but excludes
Principal Forgiveness* anyinterest accumulated on the forgiven principal after the date of the modification.
Claim Payment:
In the event a loan modification involving principal forgiveness re-defaults and a claim
is submitted, the claim payment amount shall be reduced by the amount of premium
that Radian would have received on the forgiven principal from the date of modification
through the date of default.
*Principal Forgiveness: Radian must be notified of all principal forgiveness workout plans within thirty (30) days of
borrower execution of the modification agreement. Radian will not terminate coverage upon removal of the
underlying loan from the securitization due to the modification. Radian reserves any rights or defenses it may have
under its applicable Master Policy. Under no circumstances will Radian cover principal forgiveness when the
principal forgiveness is court ordered in settlement of any litigation or other administrative action involving the
insured and/or servicer.

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

percentage level Modification Form


Home Affordable Fannie HAMP
Modification
Program (HAMP) Freddie HAMP Multiple Loans:
Non-Performing
Radian standard Various non-HAMP, GSE, non-GSE, Delegated Worksheet
Defaulted Loan NIMs, Forbearance Plan, Repayment
Non-HAMP

Modification Plan, Partial Reinstatements and


Program Stipulated Forbearance Plans retention
workout programs, each designed
to resolve the default or an imminent
default, and keep the borrower in their
home with an affordable payment.
GSE Streamlined Fannie Streamlined Modification Delegated
Streamlined

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.
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14 Default and Claims Servicing Guide | Loss Mitigation


Radian 5. Claim Advance (Second Look Program)
Default and a. Program Information
ClaimsServicing The Second Look program was established in May 2009 to help avoid potential
Guide disparate treatment of borrowers with insured mortgage loans by facilitating
modifications, for HAMP-eligible loans that fail the Treasury NPV test. The program
wasimplemented in February 2010 to enhance support of HAMP and minimize
exception processing for servicers.
Second Look is a non-delegated program and all requests must be submitted to Radian
identified as a Second Look request. Servicers are required to consider Second Look as
an option of last resort for aiding modifications on any Radian-insured loan that meets
the requirements below and must document their systems to reflect such.
The loan must be ninety (90) days or more past due.
The loan has a current LTV greater than 90% established by an interior/exterior
appraisalor interior broker price opinion (BPO), no older than one hundred and
twentydays (120) days from the date of modification evaluation.
Complete origination documentation and servicing documentation must be
submittedforreview.
The loan was originated prior to 01/01/2009.
Non-GSE loans only.
Primary coverage only.
Property must be the current primary residence of the borrower.
Evidence that the loan failed the NPV test must be included with submission request.
The borrower is not in bankruptcy.
The servicer has exhausted all other available modification options.
The requested advance amount does not exceed the maximum coverage of the loan,
lessany prior advances made.
The servicer agrees that an advance greater than 65% of the maximum claim amount
isdeemed to be a commutation of the mortgage insurance coverage.
b. Submission Process
Servicers must submit all requests electronically to MISecondLook@radian.biz
using the Second Look Request Template.
Link to Second Look Request Template
After receipt of a complete Second Look Request, Radian will respond to the request
within ten (10) business days.
Servicer will maintain all of the supporting documentation used to support the request.
Radian may request the servicer provide this documentation and additional
documentation in order to make its decision.
If an advance request is approved, it will be funded after the servicer notifies Radian
themodification has been executed, reported and the loan has cured.

Effective:
August 2014

15 Default and Claims Servicing Guide | Loss Mitigation


Radian B. Liquidation Workout (Short Sale and Deed in Lieu of Foreclosure)
Default and It is Radian policy to waive its right to pursue the deficiency upon completion of a Short Sale
ClaimsServicing orDeed in Lieu of Foreclosure.
Guide
In considering a Liquidating Workout, Radian is being asked to waive the following rights
underitsMaster Policy:
the requirement that the insured obtain title to the property (Primary & Pool Coverage)
andsellthe REO (Pool Coverage), Short Sale only;
the right of subrogation with respect to deficiencies; and
the right to acquire title to the property.
Radian reserves all rights and defenses under the applicable Policy of Insurance not tacitly
waivedby its approval of a Liquidating Workout, including the right to rescind coverage,
denyorcurtail claims.
1. Short Sales (Pre-foreclosure Sale)
a. Delegated Short Sales
Radian may grant delegated authority to provide liquidation options to the servicer.
Terms and conditions may vary depending on whether or not the loan is GSE owned.
For delegated short sales that are non-GSE, the following terms and conditions apply.

Delegated Program Requirements for Non-GSE Loans


Short Sale; Primary Coverage only
Loan Status:
Loan is sixty (60) days or more past due as of the servicers Short Sale written approval date.
Completed Short Sale must be reported to the major credit repositories.
Borrower:
Borrower(s) must have a FICO of 600 or less.
Claim:
Estimated Radian claim payment does not exceed $30,000.
Restoration adjustment waived if repair cost less than $7,500.
If the estimated loss from the sale transaction does not exceed Radians primary coverage claim payment,
thefollowing criteria must be met:
Net Proceeds to Property Value ratio must be 82% or more.
Documentation:
Copy of the complete Credit Report obtained that displays all borrowers FICO and current/past due tradelines.
Interior BPO/Appraisal to be dated ninety (90) days or less prior to the servicers Short Sale written approval date.
Copy of final HUD1 settlement statement.
Copy of servicers Short Sale Approval Letter.
Listing Agreement

b. GSE Loans (Delegated)


Per agreements between Radian and the GSEs, Radian delegates full authority for Short
Sale transactions on GSE owned loans. The servicer must follow the applicable guidelines
and procedures established and communicated by the GSEs. Radian reserves the right
to curtail a GSE delegated Short Sale that does not adhere to the GSE guidelines.
c. Non-delegated Short Sales
All transactions not eligible for delegated authority based on the conditions outlined
above, require Radian written approval and must be submitted by the servicer prior to
Effective: the liquidation event occurring.
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16 Default and Claims Servicing Guide | Loss Mitigation


In order for a Short Sale request to be considered, a loan must be sixty (60) days or
Radian
more past due unless one of the following exceptions apply:
Default and
ClaimsServicing The Borrower has been discharged from mortgage liability through Chapter 7
Guide Bankruptcy (confirmed by recent credit report or a copy of the bankruptcy document).
The Borrower is deceased (copy of the Death Certificate required).
Involuntary Employment Relocation (required supporting documentation may include
asigned and dated letter from the prior and/or current employer confirming an
employment change or layoff that required relocation).
Radian reserves its rights and defenses under the applicable Policy of Insurance for
claims submitted as a result of a completed short sale. Certain HAFA-related expenses
are not claimable (relocation assistance, for example).

d . 1st Lien Loss Mitigation Short Sale Information Requirements


Time is of the essence when pursuing and evaluating loss mitigation opportunities.
Please be aware that the following key information must be submitted to Radian to
request that a claim be accepted via Short Sale. Submit, via secure email, to a Radian
Loss Mitigation Specialist the following information:
Your Loan Number
Radian Certificate Number
Borrower(s) Last Name(s)
Next Payment Due Date
Unpaid Principal Balance (UPB)
Total Mortgage Debt (UPB, past due interest, costs, advances, etc.)
Foreclosure Sale Date (if applicable)
Property Value, Value Date and Value Type (BPO, Appraisal, AVM, etc.)
Purchase Amount (or recommended list price if HAFA)
Estimated Net Proceeds
Anticipated Closing Date (if known)
Reason for Default (if known)
Any material information that you believe should be disclosed to facilitate a decision.
(i.e.,junior lien holder requiring payment to release its lien)
Name and phone number of submitter
Radian may require additional information or documentation if needed to make a decision.
Radians review of a Short Sale approval request requires the servicer obtain and submit
specific documents and information.
This information will be used by Radian to evaluate the following factors:
Whether the borrower has the ability to pay all or a portion of the amount owed.
The borrowers original occupancy intent and current occupancy status.
The estimated proceeds from the Short Sale relative to the propertys fair market value
and seller costs.
The servicer has exhausted all retention workout options before pursuing a Short Sale.
Effective: The Short Sale is an arms-length transaction.
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17 Default and Claims Servicing Guide | Loss Mitigation


Radian The degree to which the default appears strategic in nature.
Default and Any other factor bearing on the propriety of the proposed Short Sale.
ClaimsServicing
Guide
Radians evaluation of the servicers request determines if a waiver of Policy Rights/
ClaimRequirements and acceptance of a claim are appropriate.
In the event it is determined that acceptance of a claim is not appropriate, Radian
willeither decline the request or communicate a proposed claim payment adjustment
(reduction) along with the reason for the proposed adjustment and any other terms and
conditions. A proposed claim payment adjustment will vary on a case-by-case basis
relative to the facts surrounding the request. In the event Radian provides both primary
and modified pool coverage, the proposed adjustment will be based on the total
estimated loss to Radian under both coverages.
The servicer may, in its sole discretion:
Accept Radians proposed approval terms, obtain a formal Radian conditional approval
and proceed with the Short Sale transaction.
Attempt to offset the proposed claim payment adjustment via revised Short Sale approval
terms. Any offset shall not change Radians proposed adjustment amount. Examples of an
offset would be an increased required net proceeds amount or servicer required
borrower financial participation.
Use its judgment to require reasonable borrower financial participation for all or a
portion of the entire estimated loss (deficiency). The amount and type (cash and/or
promissory note) of borrower financial participation is determined by the servicer and
shall not change Radians proposed claim payment adjustment.
Provide Radian with additional documentation that supports an elimination or reductionto
the proposed claim payment adjustment (examples include documentation that supports
the borrowers inability to pay all or a portion of the outstanding mortgage balance or
an interior property value that indicate the property has not suffered damages).
Decline our conditional approval and continue to service the loan in accordance
withtherequirements of Radians Default and Claims Servicing Guide.
In the event none of the above exceptions applies and the servicer believes it appropriate
to move forward with the Short Sale, Radian may consider a reasonable, good faith
settlement and accept a claim. Any settlement must be agreed upon in writing by
Radianand the servicer. Please contact a Radian Loan Workout Specialist at
customercare@radian.biz to discuss a workout of this nature.

2. Deed in Lieu (Delegated)


a. Delegated Deeds in Lieu
Radian may grant delegated authority to provide liquidation options to the servicer that
help to resolve a default situation. Terms and conditions may vary depending on whether
or not the loan is GSE owned.
For delegated Deed in Lieu that are non-GSE, the following terms and conditions apply:

Effective:
August 2014

18 Default and Claims Servicing Guide | Loss Mitigation


Radian Deed in Lieu of Foreclosure; Primary Coverage only (NON GSE)
Default and Loan:
ClaimsServicing Loan is sixty (60) days or more past due at the time the Deed in Lieu of Foreclosure document is executed
bytheborrower.
Guide Loan originated as owner occupied/primary residence.
Completed Deed in Lieu of Foreclosure must be reported to the major credit repositories.
Borrower:
Borrower(s) must have a FICO of 600 or less.
Property:
Property must be listed at fair market value for at least ninety (90) days unless primary borrower is deceased
orthe borrower has obtained a Chapter 7 bankruptcy discharge of mortgage liability.
Prior to conveyance, title to the property must be free and clear of all liens and encumbrances.
Claim:
Estimated Radian claim payment is not to exceed $30,000.
Fund(s) disbursed to a junior lien holder to facilitate clear title are not claimable unless approved in writing
by Radian Loss Mitigation.
Documentation:
Copy of the complete Credit Report obtained that displays all borrowers FICO and current/past due tradelines.
Interior BPO/Appraisal Date must be ninety (90) days or less prior to the servicers Deed in Lieu approval date.
Executed Deed (deed conveying title from borrower to lender).

b. GSE Loans (Delegated)


Per agreements between Radian and the GSEs, Radian delegates full authority for
Deedin Lieu transactions on GSE owned loans. The servicer must follow the applicable
guidelines and procedures established and communicated by the GSEs. Radian reserves
the right to curtail a claim resulting from a Deed in Lieu that does not adhere to the
delegated GSE guidelines.
Link to Fannie Mae and Link to Freddie Mac
c. Non Delegated Deeds in Lieu
All transactions not eligible for delegated authority based on the conditions outlined
above, require Radian written approval and must be submitted by the servicer prior to
the liquidation event occurring.
In order for a Deed in Lieu of Foreclosure request to be considered, a loan must be
sixty(60)days or more past due unless one of the following exceptions apply:
The Borrower has been discharged from mortgage liability through Chapter 7
Bankruptcy(confirmed by recent credit report or a copy of the bankruptcy document).
The Borrower is deceased (copy of the Death Certificate required).
Involuntary Employment Relocation (required supporting documentation may include
asigned and dated letter from the prior and/or current employer confirming an
employment change or layoff that required relocation).
d . 1st Lien Product Loss Mitigation Deed in Lieu of Foreclosure
InformationRequirements
Submit to a Radian Loss Mitigation Specialist via secure email the following information:
Your Loan Number
Radian Certificate Number
Borrower(s) Last Name(s)
Next Payment Due Date
Effective: Unpaid Principal Balance (UPB)
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19 Default and Claims Servicing Guide | Loss Mitigation


Radian Estimated Total Mortgage Debt (UPB, past due interest, costs, advances, etc.)
Default and Property Value, Date and Type (BPO, Appraisal, AVM, etc.)
ClaimsServicing Was the Property listed for sale? If yes, what was the asking/list price?
Guide Reason for default (brief description)
Name and phone number of submitter
Any material information that should be disclosed to facilitate a decision
(HAFA program for example)
Radian may require additional information or documentation if needed to make adecision.
Radians review of a Deed in Lieu of Foreclosure request requires that the servicer obtain
and submit specific documents and information.
This information will be used by Radian to evaluate the following factors:
Whether the borrower has the ability to pay all or a portion of the amount owed.
The borrowers original occupancy intent and current occupancy status.
The servicer has exhausted all retention workout options before pursuing a Deed in Lieu
of Foreclosure.
The degree to which the default appears strategic in nature.
Whether the marketing of the property at its fair market value by the borrower was
attempted prior to acceptance of a Deed in Lieu of Foreclosure.
Any other factor bearing on the propriety of the proposed Deed in Lieu of Foreclosure.
Radian must determine if the servicers request that Radian waive certain Policy Rights
and Claim Requirements by accepting a Deed in Lieu of Foreclosure is appropriate.
If it is determined by Radian that the request is inappropriate, Radian will either decline
the request or, if appropriate, communicate a proposed claim payment adjustment
(reduction) along with any other terms and conditions. The proposed claim payment
adjustment will vary on a case-by-case basis relative to the facts surrounding the request.
In the event Radian provides both primary and pool coverage, the adjustment will be
based on the total estimated loss to Radian under both coverages.
The servicer may:
Accept Radians conditional approval and proceed with the Deed in Lieu of Foreclosure.
Attempt to offset the proposed claim payment adjustment via revised approval terms
(anyoffset shall not change Radians proposed adjustment).
Use its judgment to require reasonable borrower financial participation for all or a
portion of the entire estimated loss (deficiency). The amount and type (cash and/or
promissory note) of borrower financial participation is determined by the servicer
andshall not change Radians proposed claim payment adjustment.
Provide Radian with additional documentation that supports an elimination or reduction
to the proposed claim payment adjustment; (for example documentation that supports
theborrowers financial hardship and inability to pay all or a portion of what is owed).
Decline our proposal and continue to service the loan in accordance with the
requirements of Radians Default and Claims Servicing Guide.
Effective:
August 2014

20 Default and Claims Servicing Guide | Loss Mitigation


Radian In the event none of the above exceptions applies and the servicer believes it appropriate
Default and to move forward with the Deed in Lieu of Foreclosure, Radian may consider a reasonable
ClaimsServicing good faith settlement and accept a claim. Any settlement must be agreed upon in writing
Guide by Radian and the servicer. 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 if you wish to discuss a workout of this nature.

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

21 Default and Claims Servicing Guide | Loss Mitigation


Radian 5 Claim Eligibility
Default and
ClaimsServicing
Guide
The eligibility of a Claim is determined by:
1.) The Terms and Limiting Conditions of Radians Master Policy and/or the Special Risk Pool
policy governing the specific certificate of coverage.
2.) Compliance with Underwriting Guidelines and Eligibility Criteria
3.) Servicing Performance

A. The Terms and Limiting Conditions of Radians Master Policy

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.

2. Exclusions from Coverage


Radians coverage is limited to the normal risk of a default caused by a change in the
borrowers economic circumstances. Insurance coverage under the Master Policy does not
extend to certain risks. The occurrence of any of the following may result in denial of coverage
or curtailment of claim payment.
Link to Radians Master Policy
Any loss resulting from the lender exercising its right to accelerate the loan based on a
balloon payment clause in the loan document. However, if the borrower refuses to accept
an extension or renewal of the mortgage terms at market rates from the lender, this
Effective: condition will not apply.
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22 Default and Claims Servicing Guide | Claim Eligibility


Radian Any loss on a loan which was delinquent prior to Radian issuing insurance coverage
Default and onthatloan.
ClaimsServicing Any loss as the result of incomplete construction of the insured property.
Guide
Any loss resulting from fraud or misrepresentation of a material fact upon which Radian
based its decision, in whole or in part, to insure the loan.
Any loss or material increase in risk of loss resulting from negligence in the origination
oftheloan or servicing of the loan prior to or after default.
Any cost or expense to repair any physical damage to the Property, including but not
limitedto physical damage arising from:
Contamination by toxic waste or hazardous waste or materials.
Earthquake, flood, or other act of God.
Civil war or riot.
Any defects in construction not identified in the Application for Insurance.

3. Inability to Evaluate a Claim


Radian must be in receipt of all requested documentation which it considers, in its sole
discretion, to be reasonably necessary to evaluate liability with respect to the Claim.
Failure to submit a Perfected Claim within the time period specified by the pertinent policy
shall relieve Radian of any obligation or liability with respect to the underlying Certificate
ofInsurance.
Link to Perfecting a Claim

B. Loan Compliance to Underwriting Guidelines and Eligibility

1. Delegated and Non-delegated Underwriting


Radian relies on the lenders representation and warranty that the loan closed in compliance
with the terms and conditions under which the loan was underwritten and approved. Adherence
to this requirement is reviewed by Radian when a mortgage insurance claim is submitted.
2. Delegated Mortgage Insurance
Radian relies on the lenders representation and warranty that the loan file and application for
mortgage insurance have been presented accurately and underwritten in accordance with the
agreed upon insurance guidelines and standards. Adherence to the guidelines and standards
and the lenders representations and warranties is reviewed by Radian when a mortgage
insurance claim is submitted.

C. Other Claim Restrictions

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

23 Default and Claims Servicing Guide | Claim Eligibility


Radian 6 Initiation of a Claim
Default and
ClaimsServicing
Guide
Timely, accurate claim filing will expedite the claim settlement process.
On Primary Insurance Claims, coverage will terminate if a claim is not filed within one (1) year
frominsureds removing the borrower(s) from title.
Pool Policy Coverage will terminate if a claim is not filed within the time specified in the policy.
Theservicer should reference claim filing guidelines for specifics.

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

24 Default and Claims Servicing Guide | Initiation of a Claim


Radian c. Extensions
Default and An extension of the sixty (60) day claim filing period may be requested. Submit the
ClaimsServicing request inwriting to Radians Claims Department, before the sixty (60) day period
Guide expires, at claims.department@radian.biz.

2. Claims Filing Format


a. Radians MI Online
Claims can be filed electronically through MI Online, Radians secure self-service
web-based portal. If you have not established an account with Radians MI Online,
visitour web site at www.radian.biz for registration instructions.
Filing a claim through MI Online allows servicers to:
Receive confirmation of a claim filing.
Review Claim Status for one or multiple claims.
View and download an Explanation of Benefits (EOB).
Review and Print Revised Claim and Original Claim.
Submit and Review status of documents submitted.
Save partially submitted claims for completion at a later time.
b. Additional Options
Industry standard 260/EDI transaction.
Email notification of a claim filing via secure email to nodreport@radian.biz.

Effective:
August 2014

25 Default and Claims Servicing Guide | Initiation of a Claim


Radian 7 Perfecting a Claim
Default and
ClaimsServicing
Guide
Radian recommends that the servicer submit all documents needed to evaluate the claim prior to the
claim review process. Radian will review the information and request any additional documentation
needed to perfect the claim directly from the servicer. Radian provides two opportunities for sending
documents to Perfect a Claim.

1. Early Ask (Pre-Claim)


Voluntary and recommended, Early Ask provides servicers the advantage of Radian ordering
and reviewing the origination documents at the time the Foreclosure Sale is scheduled. As this
isprior to the claim filing, the time frame to Perfect a Claim will likely be reduced thus expediting
the overall claim review process. If the request for Origination documents is not satisfied during
the Early Ask phase, Radian will make additional requestsonce the Claim is filed.
To enroll in the Early Ask program, the servicer should contact their Client Advocate or
RiskManager.

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.

A. Documentation Request Associated with Perfecting a Claim

1. General Document Request


Radian will initiate the claim perfection process by requesting general loan information used
tobegin building the Comprehensive Document Request. Radian provides five (5) days after
receipt of the claim for the servicer to provide the appropriate documentation. After five (5)
days Radian will issue a General Document Request. Please note: servicers who have
provided general loan information during Early Ask, or the appropriate loan program
information (valid loan approval with conditions) within five (5) days of filing the claim may
skip this step.
The servicer will then have sixty (60) days to deliver the requested documentation, including
an essential valid loan approval that will allow Radian to determine the loan program, in order
to proceed to a Comprehensive Document Request. If the request remains incomplete, Radian
will issue a follow-up General Document Request twenty (20) days after the original General
Document Request. If the follow-up does not result in the submission of proper documents,
Radian will issue the Intent to Deny Letter to the servicer twenty (20) days after the follow-up.

Effective:
August 2014

26 Default and Claims Servicing Guide | Perfecting a Claim


Radian 2. Comprehensive Document Request
Default and Upon receipt of the loan program information and the Claim Servicing Detail (CSD), Claim
ClaimsServicing Servicing Checklist (CSC) or Non-Submission, Radian will construct the Comprehensive
Guide Document Request and will ask for specific and detailed outstanding required origination,
servicing and claim documentation. Radian will only ask for additional documentation when:
The servicer submits invalid documents.
An event change has occurred such as a pre-settlement sale of REO.
The servicer will have seventy five (75) days to deliver the requested documentation in its
entirety to Radian. Partial submissions are not sufficient to satisfy the timeline. If the request
remains incomplete, Radian will issue a follow-up Comprehensive Document Request twenty
five (25) days after the original Comprehensive Document Request. If the follow-up does not
resultin the submission of proper documents, Radian will issue the Intent to Deny Letter to
theservicer.
3. Final Comprehensive Document Request
Upon receipt and review of all documentation resulting from the Comprehensive Document
Request, Radian may issue a Final Comprehensive Document Request. At this stage the
Document Fulfillment Specialist will work with the servicer to obtain any outstanding documents
necessary to perfect a claim. A Final Comprehensive Document request is only issued if:
documents submitted by the servicer, as a result of the Comprehensive Document Request
are invalid; or
Radian has been notified or is aware of an event change.
Servicers will have thirty (30) days to deliver the requested documents to Radian. Failure
tosubmit critical documents within allowable time frames will result in a denial of a claim.
Link to Dispute Resolution Denial Appeals

B. Documents Associated with Claim Perfection

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
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27 Default and Claims Servicing Guide | Perfecting a Claim


Radian Categories/Documents
Default and Income
ClaimsServicing Pay stubs
W2s
Guide W9
1099s
Full VOE
Verbal VOE
Business License (self-employed borrowers)
Self-employed income analysis worksheet
Income calculation
Tax returns with all schedules (personal and/or business)
Other income docs (Retirement, Workmens comp, alimony, child support, lease agreements etc.)
Executed 4506 T
Credit
Original Credit report including supplements and/or alternative credit references
Proof of residency (if not a US citizen)
Verification of Mortgage or Rent with cancelled checks if applicable
Additional Underwriting Documents as Applicable
Bankruptcy papers
Credit Letter of Explanation
Divorce decree and/or separation agreement
Lease with option to purchase agreement
Listing agreement/HUD from sale of home
Satisfaction of lien/judgment/collections
All letters of Explanation
Lease agreements (for primary and second subject occupancy)
Value
Complete Appraisal(s) including pictures, maps and addendums
442 Completion Certification
Purchase (if applicable)
Fully executed sales contract and addendums
Refinance Transactions
Verification of previous mortgage
Payoff statements
Closing Documents
Final Executed HUD1 Settlement Statement
Mortgage Note and Deed
Commitment for Title Insurance
Evidence of Hazard Insurance Coverage

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

28 Default and Claims Servicing Guide | Perfecting a Claim


Radian The required documentation may include, but is not limited to, the following:
Default and a. Serving notes from the last timely payment
ClaimsServicing b. Life of loan payment history
Guide c. Claim Servicing Detail (CSD)
d. Claim Servicing Checklist (CSC)
e. Request for Modification Affidavit (RMA), (complete Hardship package), if applicable
f. Request for Approval of Short Sale (RASS), if applicable
g. Short Sale Agreement (SSA), if applicable

Claim Servicing Detail (CSD) (Recommended)


Claims that are filed with the Claim Servicing Detail (CSD) contain relevant and exact
information allowing Radian to identify and specifically request only those documents
necessary to perfect theclaim. In addition, the CSD data submission facilitates the servicer
Performance Review by allowing the servicer to communicate details of relevant servicing
activity, ultimately reducing claim curtailments.
Link to CSD

Claim Servicing Checklist (CSC)


When servicers opt to not provide the CSD, the Claim Servicing Checklist (CSC) shouldbe
submitted when the claim is filed or as part of the General Document Request fulfillment
process. Utilization of the CSC will not afford servicers with maximum claim perfection. The
CSC provide sufficient information for Radian to tailor the Comprehensive Document Request
specific to the servicing activity, however, Radian will be unable to facilitate the servicer
Performance Review and these details will be extracted from servicing notes and payment
history which could lead to disputed curtailments later inthe claims process.
Link to CSC

Non-Submission of Claim Details Filing


When servicers fail to provide the CSD data or submit a CSC, Radian will issue a Comprehensive
Document Request identifying all servicing documents as required. This could require servicers
to provide unnecessary documents as Radian will be unable to identify the specific documents
necessary for claim perfection. Servicers will be responsible for notifying Radian when a
requested servicing document is not applicable. This course of action will generally delay the
claim perfection process and may result in a higher number of claim curtailments as relevant
details have not been provided by the servicer.

3. Claims-Specific Documentation and Information


Depending on the type of claimable event, the required documentation may include, but
isnotlimited to, the following:
a. Foreclosure Timeline
b. Invoices for expenses and credits not explained on the Claim Submission form
c. Foreclosure/Trustee Deed (or acceptable alternative see linked policy)
d. Current Hazard Insurance (listing valid coverage periods for expenses claimed)
e. Current Property Tax Information (listing valid coverage periods for expenses claimed)
f. Broker Price Opinion (BPO) used during the default life cycle
Effective: g. Proof of receipt of funds from a 3rd Party Sale
August 2014

29 Default and Claims Servicing Guide | Perfecting a Claim


Radian h. Bidding Instructions
Default and i. Short Sale Listing Agreement
ClaimsServicing j. Short Sale or REO HUD1 Settlement Statement
Guide k. Short Sale Last Purchase Offer and resulting Approval Letter
l. All Credit Reports pulled and used during the workout process to make Short Sale
orLossMitigation decisions
m. Hardship Eligibility Documentation (Form 710 and written hardship statement)
n. Income Documentation used to make Short Sale or Loss Mitigation decisions
o. Borrower Financial Statements used to make Short Sale or Loss Mitigation decisions
p. Asset Documentation used to make Short Sale or Loss Mitigation decisions
q. Arms Length Transaction Affidavit (FNMA Form 191; FHLMC Guide Exhibit 97)
r. Deed in Lieu Deed/Agreement
s. Deed in Lieu Approval Letter
t. Explanation of Benefits (EOB), where there was other Primary Mortgage Insurance in place

Effective:
August 2014

30 Default and Claims Servicing Guide | Perfecting a Claim


Radian 8 Claims Investigation
Default and
ClaimsServicing
Guide
A. Types of Investigations
As part of the review of claim eligibility, Radian may perform various audits.
The most common types of Investigations performed upon Claim Perfection are:
1.) Origination Review (SIU)
2.) Servicing Performance Review (SPR)
3.) Short Sale Review (SSR)

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.

1 . Origination Review (SIU)


Radians review and investigation of the loan origination includes the following elements:
Reconfirmation of the borrowers information including phone number and address
providedon the 1003.
Verification of the borrowers income, assets, employment, occupancy and history
ofhousingpayments.
For stated income or reduced document Loans; determination of the stated incomes
reasonableness with respect to the Borrowers employment and job title.
Review of the collateral including a review of the original appraisal, a retroactive AVM,
BPO,field review and/or drive-by appraisal.
Review of any associated credit reports to determine the borrowers debts and obligations
atthe time of loan origination/closing.
Questioning of any discrepancies and/or red flags noted within the file documentation
whichshould have been addressed by the lender during the original underwriting process.
Review of underwriting decision to determine that loan adheres to published guidelines
fromthe time the loan was originated.
Review of closing documentation to determine the loan was closed as represented.
Radian may conduct an interview of the borrower, contact the borrowers employer to confirm
employment or income, review bankruptcy filings or other court documents available to the
public, and review any additional public information such as on websites, which may provide
information that is material to Radians investigation.
During the investigative review Radian will not:
Incent or otherwise encourage investigators to determine that a loan was ineligible
forcoverage.
Incent or otherwise encourage investigators to pressure the borrower to discuss the loan
iftheyare unwilling to do so.
Effective:
August 2014 Utilize an expired IRS Form 4506T to confirm income.

31 Default and Claims Servicing Guide | Claims Investigation


Radian 2 . Servicing Performance Review (SPR)
Default and Radian requires servicers to adhere to the highest performance standards when servicing
ClaimsServicing Radian insured loans. The Servicing Performance Review evaluates the servicing history
Guide provided to Radian by the insured at the outset of the claim process for adherence to
thehighest performance standard ensuring that the loan was serviced in a timely and prudent
manner. Radians Servicing Performance Review validates and verifies that the following items
were conducted in a timely and prudent manner:
Compliance with the Quality Right Party Contact (QRPC) standards.
Servicer attempts to bring the loan current through collection efforts.
Breach letter was conveyed to the borrower.
Property inspection was ordered.
Efforts were made to mitigate loss through acceptable alternatives to foreclosure.
Servicer responses to borrower modification requests made through a submitted
modification package.
Foreclosure referral requested including the proper resumption of foreclosure activities
whenmodification efforts are unsuccessful.
Generally, if a required servicing activity is not documented it is deemed not to have occurred
and may result in a SPR Curtailment or denial of claim.
Link to Servicing Performance Review (SPR) Curtailment

3. Short Sale Review (SSR)


The purpose of Radians Short Sale Review is to review the conditions of claims resulting from
a Short Sale or Deed in Lieu (DIL). Radian reviews all Short Sale/DIL transactions to ensure
compliance with delegated agreements or Radians approval conditions for non-delegated
transactions. Radian reserves the right to deny or curtail a claim resulting from a Short Sale/DIL
transaction that does not comply with delegated guidelines, does not have Radian approval
(non-delegated), or does not meet the approval conditions set by Radian (non-delegated).

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

32 Default and Claims Servicing Guide | Claims Investigation


Radian 1. Factors in Rescissions
Default and Radian does not shift the burden to the lender to prove absence of fraud. Missing
ClaimsServicing documentation, on its own, generally will not warrant rescission if the information is
Guide notdeemed material, and does not prevent Radian from assessing the overall risk that
wasinsured.

2. Legacy Factors Guidelines for Loans Originated before 2009


Below are the evaluation guidelines for legacy loans originated prior to 2009. This list is not
comprehensive and is for illustrative purposes. Many of these factors will not, on their own,
warrant rescission action. However, if multiple factors warranting rescission are also present,
Radian will take this layering of additional factors into account. If a lender rebuts Radians
decision with information within the variance threshold but outside the underwriting or
eligibility guidelines for the loan, the rescission decision will not be overturned if:
a. There is an inflated discrepancy in the appraised value by 20% of the amount stated in
theapplication for insurance.
b. The recalculated debt-to-income ratio is 5% above allowable guidelines or AUSfindings.
c. Undisclosed debt is 5% above allowable guidelines.
d. The amount of assets verified is short $500 for funds to close and/or $1,000 for
reservefunds.
e. Material misrepresentation of Verification of Deposit(s) is discovered. Visibly altered asset
documentation such as a bank statement will be considered negligence by the underwriter.
f. Radian determines that an owner occupied loan was never occupied by the borrower.

Effective:
August 2014

33 Default and Claims Servicing Guide | Claims Investigation


Radian 9 Claim Settlement
Default and
ClaimsServicing
Guide
Radian has several options in calculating its liability; they include:
1. Percentage of Coverage Option
Radian may settle its Claim, subject to the Calculation of Claim Liability outlined below,
atthePercentage of Coverage Option displayed on the Certificate of Insurance.
2. Property Acquisition Access to the Property
Radian may choose to acquire the subject property, rather than pay the Percentage of
Coverage Option. In this case, Radian will require access to the property to properly
assessthe collateral.
3. Pre-Settlement/Approved Sale
Primary Insurance
Prior to settlement of the Claim, any offer for sale of the insured property must be submitted
toRadians REO Administration Department. If the remaining loss after liquidation of the REO
asset is less than the Calculated Claim Payment under Radians Percentage of Coverage
Option, Radian will pay the remaining loss. Offer submissions can be emailed to:
reoprimaryapprovals@radian.biz.

A. Suspension of Claim Settlement

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.

2. Access to the Property


If requested, Radian representatives must be allowed access to the property to determine the
property condition and value. If Radian seeks access to the property, the sixty (60) day period
will be suspended until access is made available.

3. SIU and Default Servicing Investigations


If the claim is chosen for a quality assurance compliance audit relating to loan origination
and/or default servicing, the timeline for payment of the claim shall be extended up to an
additional one hundred and twenty (120) days from the date of perfection. However, Radian
makes every effort to render a claim decision within ninety (90) days of claim perfection.

Effective:
August 2014

34 Default and Claims Servicing Guide | Claim Settlement


Radian 4. Late Payment
Default and If Radian does not pay the claim within sixty (60) days of claim perfection, subject to the
ClaimsServicing above conditions, simple interest will be paid at the Mortgage Note rate accruing from the
Guide settlement due date. Simple Interest is limited to those claims covered under the Master Policy
and those select Pool Policies that refer to the payment of Simple Interest.

B. Timing of Claim Settlement Under Structured Pool Policies


The insured should refer to the applicable policy for terms on claim settlement under structured
Pool Policies. Questions on status and terms may be directed to customercare@radian.biz.

C. Calculation of Claim Liability

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.

35 Default and Claims Servicing Guide | Claim Settlement


Radian c. Other Claim Calculation Rules/Adjustments:
Default and Interest is calculated to a maximum of sixty (60) days after the lender has acquired title to
ClaimsServicing the property, not to exceed two (2) years from the default date as per the Master Policy.
Guide
On Short Sales, interest is capped to the date of the Short Sale.
On Deed in Lieu (DIL), interest is capped to the date the DIL is executed plus sixty (60) days.
On Pool Policies and Influence Sales, interest is capped to date of sale of the property.
On Third Party Sales, interest is calculated to date of settlement on Third Party Sale; if
settlement date is not available, interest will be calculated on Foreclosure Sale.
Foreclosure/Delay Adjustments/Curtailments.
Rents received before and after foreclosure mitigate loss for all parties, and
thereforeshall be deducted from any Claim for Loss filed.

2. Payment of Claim/Explanation of Benefits (EOB)


Radian will issue payments for claims via check or electronic wire of funds. Payments
aremade on a predetermined monthly schedule and typically occur weekly.
Upon payment, an Explanation of Benefits (EOB) is made available on MI Online.
The EOB provides a categorized itemization of a claim payment. If the claim was filed
viaEDI260 or via Radians MI Online application, the EOB will be in a side-by-side
(Submitted vs. Authorized) format detailing the losses requested in the insureds claim,
compared to the amount for each loss authorized by Radian. Any claim curtailments
willbeitemized on the EOB.
If the policy includes a deferred premium, or if any premium is owed to Radian, including
premium on principal forgiveness or premium sent to servicers on over turned rescissions,
thefinal claim payment will be net of the outstanding deferred premium amount.

3. Return of Paid Claim Funds


If for any reason a property is reverted back to the homeowner after a claim has been paid
(invalid foreclosure, post-foreclosure loss mitigation), the servicer/insured is obligated toreturn
the claim funds to Radian in order for the coverage reinstatement process to begin.

4. Servicing Performance Review (SPR) Curtailment


Radian requires servicers to adhere to the highest performance standards when servicing
Radian insured loans.
Link to Highest Standard of Servicing
When a servicer fails to service a loan insured by Radian in a reasonable and prudent
manner and consistent with the Highest Standards of Servicing as required by the Master
Policy, Radian may adjust the loss to reflect the harm it has suffered in the form of increased
actual loss or increased risk of loss. Identified deviations from servicing best practices are
examined in order to determine whether they resulted in harm to Radian in the form of an
increased risk of loss or missed opportunity to mitigate loss. If it is determined that an identified
deficiency did not result in harm, it does not result in a curtailment.
Effective:
August 2014

36 Default and Claims Servicing Guide | Claim Settlement


Radian Only in those instances where Radian can reasonably calculate the amount by which the
Default and deficiency in servicing increased the Loss as calculated under the policy is it required to adjust
ClaimsServicing losses. In all other cases Radian has the contractual right to deny coverage for the entire loss.
Guide Rather than deny claims for which deficient servicing has been identified, but for which the
resultant loss cant be calculated with arithmetic certainty, Radian makes every effort to
accurately estimate the harm it has suffered in the form of increased liability exposure or
lossof opportunity to mitigate or abrogate loss. In some instances, however, deficiencies
maybe so egregious as to require denial of the entire claim. The deficiencies will be noted
onthe EOB.

Effective:
August 2014

37 Default and Claims Servicing Guide | Claim Settlement


Radian 10 Dispute Resolution
Default and
ClaimsServicing
Guide
Radians Dispute Resolution Unit provides servicers support for any claim decision regarding
documentor policy denials, rescissions, and claim payments with adjustments or servicing curtailments.
This unit works independent of the initial claim process to assure our servicers a clear path to resolve
settled claims.

Contacting Dispute Resolution


Radians Dispute Resolution Unit has a dedicated email address: disputeresolution@radian.biz.
To expedite handling, please include the following information in the Subject Line of the email:
Type of Appeal (Supplemental Claim, Denial Appeal, Rescission Appeal, SPR Appeal)
Radian Certificate Number
Lender Loan Number (optional)

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.

B. Servicing Performance Review (SPR) Curtailment Appeals

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

38 Default and Claims Servicing Guide | Dispute Resolution


Radian Radian will accept appeals for SPR curtailments subject to the Limitations of Action clause
Default and andother time constraints listed in our Master Policy for the following reasons:
ClaimsServicing 1. Missing notes, documents, or additional information not previously provided
Guide toRadianwhichdocument activity not evident during the initial review.
2. Substantiation of activity through the CSD data.
3. Servicer appealing based on possible errors or omissions in the original review.
Link to Radians Master Policy
To File a SPR Appeal:
Submit your appeal along with supporting documentation to Radians Dispute Resolution Unit
atdisputeresolution@radian.biz.
Follow Supplemental Claim filing instructions via EDI.
Settlement of SPR Curtailment Appeals
Radian will issue payments for approved SPR Appeals via check or electronic wire of funds
aspart of our Supplemental Claim Payment process. Payments are made on a predetermined
monthly schedule and typically occur twice-a-month. An Explanation of Benefit (EOB) will be
available via MI Online after settlement on all submissions. In addition, a decision letter with
detailed-explanation of our decision will also be available via the Correspondence tab of
MIOnline at time of settlement.

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

39 Default and Claims Servicing Guide | Dispute Resolution


Radian D. Denial Appeals
Default and Radian will consider appeals for Claim Denials based on the reason for the denial. Most denials
ClaimsServicing are summarized into two categories:
Guide
1. Policy Violation Denials
Policy Violation Denials occur when Radian determines the servicer or insured did not meet
key requirements of the Master Policy or Special Risk Contract related to the insurance of the
loan. The following are the common policy denials:*
Late/No Notice of Default (NOD) filing
Late Claim filing
Property Destroyed
Gain on Sale
Unapproved Deed in Lieu
Unapproved Short Sale
Incorrect foreclosure bidding Instructions
Stop Loss reached
Sunset of Policy
To appeal a policy violation denial send a written appeal and any supporting documentation
to disputeresolution@radian.biz.
Radian will consider appeals for these denials subject to the Limitations of Action clause and
other time constraints listed in our Master Policy.
*This list is not all inclusive; Radian may deny a claim for other policy violations.

2. Missing Document Denials


Missing Document Denials occur when the servicer or insured does not provide Radian
withthe requested documents that are necessary to perfect the claim.
To appeal documentation denials, send the requested documents to Radian via:
Email to claimsdocumentrequest@radian.biz
MI Online through the Document Center
For specific questions or an appeal containing information other than documents,
send an email to disputeresolution@radian.biz.
Radian will consider appeals for document denials until the claim perfection deadline, which
isone (1) year from the applicable claimable event on primary claims. Pool loan deadlines
vary by policy, see the specific pool policy for more information regarding perfection deadline.
Settlement of Denial Appeals
Each appeal will receive the appropriate response letter based upon the outcome ofthereview.
New Document Request when additional documents are required to perfect theclaim
andthe claim perfection deadline has not been exceeded.
Reinstatement Letter when the servicer has met the claim perfection requirements.
Policy Violation Denial Letter when Radian determines the policy governing the coverage
was not met.
Effective:
August 2014

40 Default and Claims Servicing Guide | Dispute Resolution


Radian Radian Default and Claims ContactInformation
Default and
ClaimsServicing
Guide

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.

1601 Market Street


Philadelphia, Pennsylvania
19103-2337
800.523.1988
215.231.1000 7/14