Default and Claims Servicing Guide

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Default and Claims Servicing Guide

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Effective: August 26, 2010

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Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

1 Reporting Delinquent Mortgages . . . . . . 71 .1 Reporting Requirements . . . . . . . . . . . 7

A. Early-Payment Defaults . . . . . . . . . . . . 7B. Seasoned-Payment Defaults. . . . . . . . 7C. Current Loans “In Jeopardy” . . . . . . . 7

1 .2 Format of Default Notices . . . . . . . . . . 7A Electronic Transmission Set-Up. . . . . . 7B. Electronic File Transmission . . . . . . . . 8C. Pre-Printed Forms (Waiver Required). 8

1 .3 Monthly Reporting Requirements . . . . 8A. Monthly Delinquency Report (MDR) . 8B. Monthly Electronic File Transmission . 8

2 Delinquent Loan Servicing . . . . . . . . . . . . . 92 .1 Servicer Basic Responsibilities . . . . . . . 9

A. Staffing . . . . . . . . . . . . . . . . . . . . . . . . 9B. Counseling Availability. . . . . . . . . . . . 9C. Loss Mitigation Methods

and Strategies. . . . . . . . . . . . . . . . . . . 92 .2 Contact the Borrower . . . . . . . . . . . . . 102 .3 Loss Mitigation . . . . . . . . . . . . . . . . . . 10

A. Default Servicing Touch Points . . . . . 11B. Servicer Obligation . . . . . . . . . . . . . 11

2 .4 Credit Reporting . . . . . . . . . . . . . . . . . 112 .5 Bankruptcies . . . . . . . . . . . . . . . . . . . . 11

A. Notification to Radian . . . . . . . . . . . 12B. Relief of Automatic Stay. . . . . . . . . . 12

2 .6 Foreclosure Proceedings . . . . . . . . . . 12A. Foreclosure Overview . . . . . . . . . . . 12B. Foreclosure Expectations . . . . . . . . . 12C. Foreclosure Mitigation . . . . . . . . . . . 12D. Foreclosure Documents . . . . . . . . . . 13E. Foreclosure Bid Price . . . . . . . . . . . . 13

2 .7 Non-Owner Occupied Property . . . . . 13A. Obtain Rental Income . . . . . . . . . . . 13B. Notify Borrower at Mailing Address 13C. Consider the Tenant for a Sale or

Assumption . . . . . . . . . . . . . . . . . . . . 132 .8 Appointment of Receiver . . . . . . . . . . 142 .9 Eminent Domain or Condemnation . . 142 .10 Notifying Taxing Authorities . . . . . . 142 .11 Security Interest Litigation . . . . . . . . 142 .12 Sub-Prime/Alternative A

Loan Servicing . . . . . . . . . . . . . . . . . . 142 .13 Servicing-Related

Claim Adjustments . . . . . . . . . . . . . . . 15A. Solicitation . . . . . . . . . . . . . . . . . . . . 15B. Response to a

Borrower-Initiated contact . . . . . . . . 15C. Communication with a

borrower after a workout discussion has been initiated . . . . . 16

D. Collecting required documents on a qualified workout . . . . . . . . . . 16

E. Finalizing Workout with all documentation received . . . . . . . . . 16

3 Loan Workouts . . . . . . . . . . . . . . . . . . . . . . 173 .1 Loan Workout Philosophy . . . . . . . . . 17

A. Loan Workout Specialist . . . . . . . . . 17B. Early Intervention . . . . . . . . . . . . . . . 18C. Asset Value . . . . . . . . . . . . . . . . . . . . 18D. Borrower Contact . . . . . . . . . . . . . . . 18

3 .2 Delegated Loss Mitigation Authority . . . . . . . . . . . . . . . . . . . . . . . 19

3 .3 Home Affordable Modification Program (HAMP) . . . . . . . . . . . . . . . . 20

3 .4 Streamlined Information Requirements . . . . . . . . . . . . . . . . . . . 20

Table of Contents

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Default, Claim and Loan Workout Procedures and Guidelines

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1st Lien – Loss Mitigation Streamlined Short Sale Information Requirements. . . . . . . . . 20

1st Lien Product – Loss Mitigation Streamlined Deed in Lieu of Foreclosure Information Requirements . . . . . . . . . . . . . . . . . . 21

3 .5 Radian FastAdvance . . . . . . . . . . . . . 21FastAdvance® . . . . . . . . . . . . . . . . . . . . . 21Radian FastAdvance® Servicer

Quick Reference Guide . . . . . . . . . . 23Radian FastAdvance®

Quick Reference Guide – Do’s and Don’ts . . . . . . . . . . . . . . 24

3 .6 Bankruptcy and Workouts . . . . . . . . 243 .7 Financial Forms/Documentation . . . . 253 .8 Deficiency Judgments . . . . . . . . . . . . . 25

4 Claims Procedures . . . . . . . . . . . . . . . . . . . 264 .1 Claims Filing Format . . . . . . . . . . . . . . 26

A. Electronic Submission Set-Up . . . . . . 26B. Electronic Claim Forms. . . . . . . . . . . 26C. Pre-Printed Forms

(Waiver Required) . . . . . . . . . . . . . . 264 .2 Claims Filing . . . . . . . . . . . . . . . . . . . . 26

A. When to File . . . . . . . . . . . . . . . . . . . 26B. Voluntary Conveyance. . . . . . . . . . . 27C. Prior to Expiration of

Redemption Period . . . . . . . . . . . . . . 27D. Extensions . . . . . . . . . . . . . . . . . . . . . 27

4 .3 Access to the Property . . . . . . . . . . . . 274 .4 Eviction of Tenants . . . . . . . . . . . . . . . 27

A. Filing of Claim before Eviction . . . . . 27B. Rents Received . . . . . . . . . . . . . . . . . 27

4 .5 Sale of REO Property/Duty to Cooperate . . . . . . . . . . . . . . . . . . . . 28A. Listing the Property For Sale. . . . . . . 28B. REO Purchase Offers . . . . . . . . . . . . 28

5 Components for a Claim for Loss . . . . . . 295 .1 Documents Needed for a

Complete Claim for Loss . . . . . . . . . . 295 .2 Alternative Mortgage Forms . . . . . . . 29

6 Limitation of Coverage . . . . . . . . . . . . . . . 30

7 Exclusions from Coverage . . . . . . . . . . . . 31

8 Claim Settlement . . . . . . . . . . . . . . . . . . . . 328 .1 Timing of Claim Settlement . . . . . . . . 32

A. Additional Documentation . . . . . . . . 32B. Access. . . . . . . . . . . . . . . . . . . . . . . . 32C. Acquisition. . . . . . . . . . . . . . . . . . . . . 32D. SIU Investigations . . . . . . . . . . . . . . . 32E. Late Payment. . . . . . . . . . . . . . . . . . . 32

8 .2 Timing of Claim Settlement Under Structured Pool Policies . . . . . 33

Appendix I – FormsNotice of Default . . . . . . . . . . . . . . . . . . . . . . . . . . 35Monthly Delinquency Report. . . . . . . . . . . . . . . . . 36Claim For Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Delegated Pre-Foreclosure Sale Notice . . . . . . . . 39Delegated Loan Modification Notice . . . . . . . . . . 41Notification of Mortgage

Insurance Modification . . . . . . . . . . . . . . . . . . . 43FastAdvance® Batch Request – Contact Info. . . . 44FastAdvance® Batch Request – Batch Data. . . . . 45

Appendix II – ExhibitsExhibit A Foreclosure Bidding

Instructions by State . . . . . . . . . . . . . . 47Exhibit B Promissory Note . . . . . . . . . . . . . . . . . 48Exhibit C Claims Processing

Information Sheet . . . . . . . . . . . . . . . . 51Exhibit D Default Servicing

Information Card. . . . . . . . . . . . . . . . . 53Exhibit E FastAdvance Servicer

Quick Reference Guide . . . . . . . . . . . 55Exhibit F What You Need To Know

About Insurance Claim Fraud. . . . . . . 57Exhibit G Radian Loss Management

Contact Information . . . . . . . . . . . . . . 58Exhibit H Loss Management Department

Manager List . . . . . . . . . . . . . . . . . . . . 59

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Default, Claim and Loan Workout

Procedures and Guidelines

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Default and Claims Servicing Guide | Introduction

Introduction

Radian’s Default Servicing Guide outlines standard procedures for servicing Radian-insured first lien mortgage loans. These simplified procedures provide flexibility and ease of compliance for our customers, while ensuring sound servicing practices. Adherence to these procedures enables Radian to provide excellent quality default and claim servicing for you, our customer. This Guide follows the processing of defaulted loans in three areas: Defaults, Loan Workouts and Claims. Additionally, at the end of this Guide is an appendix that includes useful forms, exhibits and contact information to facilitate the default, loan workout and claim process with Radian.

The following information is intended only as a general guide for servicing delinquent Radian insured loans. These guidelines may be amended from time to time in order to meet the changing needs of the mortgage servicing industry. Please refer to the appropriate provisions of the Master Policy of Insurance or the applicable Pool Policy for a definitive explanation of the lender’s and Radian’s respective rights and responsibilities. As a reminder, the Master Policy of Insurance requires in Condition Seven, Loan Servicing:

“Every Loan insured under this Policy shall be serviced in a reasonable and prudent manner and consistent with the highest standards of servicing in use in the residential mortgage industry. Such servicing shall include, but not be limited to, diligent efforts to cure a Default, including Borrower contact, and prompt reporting of any Default to the appropriate credit reporting bureau(s).”

Radian’s Claims Department is available at 877.723.4261 to help you with any servicing questions. Radian’s Loss Mitigation Department may be reached at 800.523.1988. Please refer to Appendix II, Exhibit G, page 58, for a guide to Radian’s Loss Management contacts.


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7 Default and Claims Servicing Guide | Reporting Delinquent Mortgages

Reporting Delinquent Mortgages1

Timely and accurate reporting of delinquent mortgages is essential for effective default servicing and is also a condition precedent for a claim payment under the Radian Master Policy of Insurance.

Reporting Requirements1 .1

A . Early-Payment DefaultsIf the borrower fails to make any of the initial 12 monthly payments, the loan is considered to be an early default.

When an early default occurs, a Notice of Default (NOD) must be reported to Radian within 15 days after the second payment is due.

B . Seasoned-Payment DefaultsAfter the first year of timely loan payments, a Notice of Default (NOD) must be reported to Radian for any loan that is due for three months. This must be done no later than 15 days after the third payment is due.

C . Current Loans “In Jeopardy”While filing a NOD is not a requirement, Radian encourages NODs on current loans if information made available to the servicer indicates the loan is in jeopardy of imminent default. This should be done only after a careful review of the facts and circumstances surrounding the case.

For certain liquidating workout types (short sales, short refinances and deeds in lieu) Radian may not consider participating in a workout unless the loan is in default (60 days or more past due).

Note: A NOD is required for loans that are deemed to be in imminent default under the provisions of the Treasury’s “Making Home Affordable” program . This is to be sent in the first reporting period after the determination has been made of imminent default .

Format of Default Notices1 .2

Defaults may be reported by submitting an electronic transmission of data either EDI in the industry standard format or via Secured FTP. Radian also accepts Excel spreadsheets with default data emailed to [email protected].

A Electronic Transmission Set-UpIf a loan servicer is in a position to report default data electronically either via EDI transmission or via Secured FTP, please contact Radian’s AVP of Default Reporting, Larry Corner, at [email protected], to assist with instructions.

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Default and Claims Servicing Guide | Reporting Delinquent Mortgages

B . Electronic File TransmissionRadian will accept NODs and Monthly Delinquency Reports (MDR) via electronic file transmission in the same Mortgage Bankers Association (MBA) standard format as tape-to-tape reporting. For specific instructions for electronic file transmissions, please contact Radian’s Claims Department at 877.723.4261, ext. 1755. To send Radian an email notification of a default filing, email to: [email protected].

C . Pre-Printed Forms (Waiver Required)In appropriate circumstances, Radian will consider a waiver to electronic filing. In these instances, Radian recommends using a Radian NOD form to be certain that all important information is provided. A sample can be found in the form appendix of this guide, page 35. Radian will also accept the generic NOD form approved by the Mortgage Insurance Companies of America (MICA) and the Mortgage Bankers Association (MBA). Any waiver of electronic filing must be approved by Radian’s AVP of Default Reporting.

Monthly Reporting Requirements1 .3

Radian must be kept informed of the status of the loan on a monthly basis. This status report should include, but is not limited to, the due date, specific reason for default, any contact efforts, and the specific results of any borrower contact. These monthly reports must continue until it has been reported that: (a) the borrower is no longer in default; (b) the proceedings have terminated; or (c) the claim has been paid. As in the case of the NOD, the monthly updates may be reported via electronic file transmission, computer tape or by an individual report sent to Radian.

A . Monthly Delinquency Report (MDR)For NOD submissions other than EDI, an MDR from Radian will be produced and provided to the lender each month until the loan cures, pays off, or a claim is filed. The completed form should then be returned to [email protected]. A sample MDR can be found in the form appendix in this guide, page 36.

B . Monthly Electronic File TransmissionIf prior arrangements have been made with Radian to report loans in default by electronic file transmission, Radian will not send MDRs to the lender. The lender will either transmit an electronic file each month or email a text file to [email protected] or drop the file in an inbound designated folder for FTP transmission. This electronic file must include a status report on any Radian loan that has previously been reported in default until it has been reported that: (a) the borrower is no longer in default; (b) the proceedings have terminated; or (c) the claim has been filed. This file must be received by Radian no later than the last day of each month. For specific instructions before choosing this option, please contact Radian’s AVP of Default Reporting.


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9 Default and Claims Servicing Guide | Delinquent Loan Servicing

Delinquent Loan Servicing2

Communication with the borrower is of primary importance in servicing delinquent loans. Every borrower contact needs to be pursued with the goal of resolving the borrower’s default. Once contact with a borrower is established, the borrower’s specific reason for default must be determined. This is a critical factor in deciding whether an alternative to foreclosure is feasible. Radian is committed to keeping borrowers in their homes whenever possible and has committed to ensure all reasonable steps are taken to help a borrower resolve a delinquency and avoid foreclosure. A servicer represents the most direct point of contact with a borrower, and is most able to act to resolve delinquencies. It is therefore imperative that the Servicer maintain the highest standards of servicing. To accomplish that, it is essential for the Servicer to ensure certain fundamental conditions are in place.

Servicer Basic Responsibilities2 .1

A . StaffingRadian expects all servicers of Radian-insured loans to employ a skilled staff with documented processes devoted to collections and loss mitigation activities. In addition, the companies servicing Radian-insured loans must:

• Haveenoughskilledstafftoensurereasonableworkloadsforthosestaff.

• Maintainaratioofmanagementtostaffsufficienttoensurethatallproceduralquestions, requests for case advice, and borrower escalations can be addressed in a timely manner.

• Provideappropriatedefaultmanagementtrainingtotheiremployees.

B . Counseling AvailabilityConsumer credit counseling is available, as required by Federal law, and the Servicer shall encourage delinquent borrowers to obtain credit counseling. If requested, the Servicer must provide the borrower with information about counseling agencies as well as other types of local, state or Federal assistance. Radian also provides complimentary counseling through a nationwide counseling service.

C . Loss Mitigation Methods and StrategiesRadian expects each servicer to be familiar with, utilize and train employees about any available loss mitigation options, workout methods and strategies. All default activities must be in conformity with the highest industry servicing standards and consist of documented policies and procedures that are easily accessible to all staff. Servicing is to be completed in accordance with stated policies and procedures.

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Default and Claims Servicing Guide | Delinquent Loan Servicing

Contact the Borrower2 .2

Communication with the borrower is the single most important step in servicing delinquent loans, and since the Servicer is the most direct point of contact with a borrower, it is most able to act to resolve delinquencies. For a loan in default, any borrower contact may be the last, so the Servicer must make every attempt during each contact to resolve the borrower’s default and to obtain all information critical to the workout process. Among the borrower contact requirements, the Servicer must:

• Contacttheborrowerbythe17thdayofdelinquencyinthefirstmonthofdefault.Highrisk loans, which include loans with prior delinquency, loans that have already been modified, loans on repayment plans, and Sub-prime/Alternative A, and Option ARM loans, must be contacted by the 5th day of delinquency in the first month delinquency.

• Totheextentpermittedbylaw,contactmustbeattemptedforallborrowersbythe5thday of default in any succeeding months if a loan remains in default; and attempts must be made at least every two days thereafter on all cases involving no contact or no promise to pay, until a promise to pay is reached or until the case is removed from the calling queue due to justifiable reasons based on a response from the borrower.

• Applysoundmethodsofresearchingalternativecontactinformationfortheborrowerif successful right-party-contact has not been made by the 45th day of delinquency.

• Obtainadetaileddescriptionofthereasonfordefaultduringtheinitialcontactwiththe borrower.

• Indicatethereason(s)fortheborrower’sdefaultonRadian’sNODformorMDR.

• Asktheborrowerduringeverycontactwhentheyintendtomakethedelinquentpayments, unless payment or workout arrangements have already been made.

• Follow-upwithintwobusinessdays,aspermittedbylaw,whentheborrowerhasinitiated contact.

• ComplywithallFederal,stateandlocallawspertainingtoborrowercontact,debtcollection and loss mitigation.

Loss Mitigation2 .3

Radianhasadoptedtheservicercontactguidelinesasestablishedbythe“MakingHomeAffordable” program. The guidelines contained in that program, especially those related to a potential loan workout, are incorporated herein by reference.

A servicer is required to utilize any available loss mitigation workout methods and strategies. Upon first becoming aware of a delinquency, the servicer should initiate


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contact to the borrower (or follow-up in the case where the borrower initiated contact) and pursue a loss mitigation workout option if appropriate. This involves servicer-specific programs, consumer counseling and any available Federal workout programs, suchasHAMP.Ifafterreasonableloananalysis,includingNPVcalculations,theservicer is unable to find a workout program suitable for the borrower, the servicer should provide Radian the opportunity to review the borrower’s situation for any potential Loss Mitigation workout option. A full review of Radian’s Loss Mitigation services is included in Section 3, on page 17 of this Guide.

A . Default Servicing Touch PointsThe following touch points in the servicing process are considered critical opportunities for effective loss mitigation:

• Timelynoticethataloandelinquencyprogressedtodefaultstatus.• Promptresponsetoaborrower’srequestforassistanceorinquiry

(phone, letter, web/email).• Reviewofcompletefinancialdataformodificationsubmission.• Follow-uponrequireddocumentationandinformationneededto

finalize an appropriate workout solution.

B . Servicer ObligationServicers play an important role in loss mitigation activities and, as stated in the Master Policy, can directly affect the response to a claim: “If the Insured breaches its duty to prevent and mitigate Loss, then the Company’s remedy shall be to reduce the Insured’s Loss by the reasonably estimated extent of the resulting prejudice to the Company, rather than to deny the Claim.”

Credit Reporting2 .4

Preservation of a good credit history may prove to be incentive to many borrowers. Accurate credit reporting about loss mitigation activity is important to minimize risk.

Once the loan is 75 days past due, Radian requires that the entire loan history be reported to the three major credit repositories. In addition, completed liquidating workouts such as a short sale, deed in lieu and short refinance must be reported to the credit repositories in a manner that states the loan was not contractually satisfied.

Bankruptcies2 .5

Some distressed borrowers seek protection under various chapters of the Federal Bankruptcy Act when faced with foreclosure. Radian requires notification of bankruptcy filings, and requires that appropriate action be taken to protect and enforce all rights in the mortgage loan and the underlying security interest. Radian further requires that appropriate action be taken to remove these cases from the protection of the bankruptcy court in order to proceed with the foreclosure and obtain title.

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In spite of bankruptcy filing, Radian has several special programs to avoid a foreclosure. Please refer to Bankruptcy and Workouts in Subsection 3.6, page 24, for techniques on mitigating losses from bankruptcies.

A . Notification to RadianIf the borrower files for protection under the Federal Bankruptcy Act, Radian should be notified, when required in Section 1, Reporting Delinquent Mortgages, page 7.

B . Relief of Automatic StayAppropriate action must be taken to release the automatic stay in any bankruptcy filing if the borrower misses two post-petition payments, or immediately, in the case of a Chapter 7, no-asset filing.

Foreclosure Proceedings2 .6

If no loan workout options are appropriate, foreclosure proceedings should be initiated promptly, and no later than six months after the Insured is permitted to do so under the loan documentation and applicable laws. (See available alternatives to foreclosure in Section 3, Loan Workouts, page 17.)

A . Foreclosure OverviewThe servicer shall commence and diligently pursue appropriate foreclosure proceedings in accordance with appropriate state laws. Once foreclosure begins, its completion must be pursued diligently. If the borrower contests the foreclosure or files suit, Radian must be notified on the monthly default report (MDR).

B . Foreclosure ExpectationsRadian expects a timely referral after a borrower defaults. Radian further expects there to be a sustained and reasonable effort to complete the foreclosure according to the time parameters for each state (see Appendix II, Exhibit A, page 47). Radian further expects to be notified of extenuating circumstances which would make a foreclosure action inadvisable within the required time line.

C . Foreclosure MitigationIn accordance with the nationwide desire to work with borrowers on loss mitigation opportunities, Radian is flexible in the time frames for completion of the foreclosure proceedings, provided that the Insured/Servicer documents the loss mitigation efforts which resulted in the foreclosure delay. Without this documentation, Radian will enforce the benchmarks within the state table.

Loss mitigation options include, but are not limited to, forbearance agreements, loan modifications, pre-foreclosure sales or deed-in-lieu of foreclosure must be diligently solicited.


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While expedient foreclosure processing is important, foreclosure alternatives should still be considered throughout the entire process. If appropriate, Radian will authorize a postponement or even a cancellation of a foreclosure sale in order to mitigate losses.

D . Foreclosure DocumentsRadian may request copies of all documents with regard to foreclosure. This includes the pre-foreclosure title search, foreclosure complaints, and other notices and decrees.

E . Foreclosure Bid PriceIn the absence of bidding instructions from Radian, the insured must bid in accordance with the state guidelines as outlined in Exhibit A. For loans owned by Fannie Mae, Radian has agreed to the foreclosure bidding guidelines as outlined in Fannie Mae Announcement 02-04.

a) In states which provide deficiency recovery rights, or if special circumstances warrant, Radian may specify a bid outside of the guidelines in Exhibit A.

b) Radian will not require a bid of less than the uninsured loan amount. If the recommended bid per Exhibit A is less than the uninsured loan amount, the insured may bid the uninsured loan amount.

Non-Owner Occupied Property2 .7

When the security for the loan is an investment property or the property has been converted to a rental property, additional servicing steps must be taken. As stated more specifically below, the necessary steps must be taken to obtain the rental income. The borrower should also receive the proper collection notices. Radian also expects the Servicer to comply with applicable state laws regarding tenants.

A . Obtain Rental IncomeIf the loan is in default and the property is tenant-occupied, action should be considered to obtain the rental income (see Subsection 2.8, Appointment of Receiver, page 14).

B . Notify Borrower at Mailing AddressRadian requires that notices of delinquency are sent to the address of the insured property as well as to the borrower’s mailing address.

C . Consider the Tenant for a Sale or AssumptionIf the tenant has indicated the desire and means to remain in the property, an assumption or sale to the tenant should be considered to resolve the default. If such a resolution anticipates an approved sale, then Radian’s prior approval must be obtained.

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Appointment of Receiver2 .8

The procedures and attendant costs for appointing a receiver vary with state law. Radian retains the right to require the appointment of a receiver.

Radian does not require the appointment of a receiver when the appointment would cause an undue delay in foreclosure proceedings. Without an offsetting advantage, when the expense of the receivership proceedings outweighs the income from the property, appointing a receiver is not necessary.

Eminent Domain or Condemnation2 .9

In the event all or a part of the property is taken through the exercise of eminent domain or condemnation (or sale instead of condemnation), the entire proceeds awarded must be applied toward reduction of the indebtedness of the loan.

Notifying Taxing Authorities2 .10

The Internal Revenue Service and any state or local taxing authorities that require reporting of any acquisition of mortgaged properties should be notified as required by law.

Security Interest Litigation2 .11

The Insured/Servicer is required to notify Radian of any litigation impacting mortgage indebtedness or security interest and to keep Radian informed on a continuous basis of the status of the litigation. In addition, they will forward to Radian upon request any documents regarding the litigation.

To the extent the litigation has an impact on Radian’s rights and obligations under the Master Policy, the Insured/Servicer shall not agree to settle any litigation without the prior written consent of an authorized Radian representative.

Sub-Prime/Alternative A Loan Servicing2 .12

In addition to the preceding items in Section 2, additional loan servicing requirements are specific to Sub-Prime/Alternative A loan. Sub-Prime/Alternative A loans are generally higher risk than conforming loans. Therefore, these loans require extra diligence by loan servicers. The following are some of the additional minimum servicing practices Radian expects to be observed with respect to these loans.


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• Welcomelettersfornewloanoriginationsandservicingtransfersshouldbefollowedwith a personal phone call to establish a relationship with the customer and to educate the customer about their obligation.

• Paymentremindernoticesorlatechargeassessmentnoticesshallbesentbythe16th day after a scheduled payment remains unpaid.

• Diligentcollectioneffortsshallbeundertakentomitigatelossforanyloanthatisdeemed uncollectible according to the existing terms of the promissory note.

• Intheabsenceofapendingresolutiontothedefault,propertyinspectionsshouldbe ordered on a monthly basis for any loan 45+ days past due.

• Initiationofforeclosureshouldbeginbythe90thdayofdelinquencyunlessafirmresolution to the delinquency is in place.

Servicing-Related Claim Adjustments2 .13

Radian has established borrower contact standards and claim adjustment figures to provide recommended claim adjustment ranges when failure to follow reasonable contact guidelines results in a material increase to the risk of foreclosure or to a missed opportunity to abrogate the loss. To the extent to which Radian determines that we have been damaged by insufficient borrower contact, we will adjust the loss accordingly.

This policy is pursuant to the Master Policy Condition 5 – Exceptions to Policy, Section E:5 .E . Negligence of Insured or ServicerAny Loss arising out of any negligence of the Insured or Servicer in the origination or servicing of a Loan which negligence is either the proximate cause of such Loss or materially increases the risk insured, provided that if the Company can reasonably determine the amount by which such negligence increased the Loss as calculated in Condition Eleven (B), its remedy shall be to adjust the Loss accordingly.

We provide in this document the standards surrounding the Insured/Servicer’s contact requirements for specific touch points of borrower contact. Failure to comply with the following touch points may result in a claim adjustment.

A . Solicitation The Servicer is required to proactively pursue workout opportunities through direct outreach and solicitation of delinquent borrowers.

B . Response to a Borrower-Initiated contact The Servicer is required to promptly reply to borrower-initiated contact. This would be specifically in cases where there is no workout in progress, and that the inquiry was to initiate a discussion.

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C . Communication with a borrower after a workout discussion has been initiated The Servicer is required to follow through on workouts that are in progress to ensure that they are completed in a timely and beneficial manner for the borrower.

D . Collecting required documents on a qualified workout Once a workout process has begun and a request sent to the borrower for necessary documentation, the Servicer is required to actively communicate with the borrower in order to ensure all necessary documentation is received in a timely and beneficial manner for the borrower.

E . Finalizing Workout with all documentation received The final stages of a workout process are important to ensure that the efforts expended by the Servicer and borrower actually result in a completed workout plan.


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17 Default and Claims Servicing Guide | Loan Workouts

Loan Workouts3

A successful loan workout is a series of compromises by all parties to the transaction that avoids the least desirable result: mortgage foreclosure. In general, there are two broad categories of loan workouts: those that allow the borrower to retain their home, or “retention workouts”; and those that result in the borrower losing their home, or “liquidation workouts.” Radian strongly encourages the servicer to exhaust all retention workout options before pursuing a liquidation workout. In addition, in evaluating default solutions, the servicer should progress sequentially from the least invasive solution to the most invasive solution, only moving down the list when the less invasive solution proves unfeasible. An example of such a sequence is below:

Retention Workouts 1. Reinstatement2. Repayment Plan3. Forbearance4. Loan Modification

Liquidation Workouts 5. Pre-foreclosure (Short) Sale6. Deed-in-lieu of foreclosure7. Foreclosure Sale

This list is for illustration only. It may not contain all available solutions or it may list options not approved by some investors, so be sure to know what options the investor allows before making a final decision.

Radian, under its Delegated Loan Workout Program, offers servicers the flexibility to pursue and finalize foreclosure alternatives without requiring prior Radian approval. This “no hassle” approach to decision-making minimizes the time and cost of structuring workouts. It is essential to submit the proper documentation to Radian upon completing a workout and label any delegated documentation package as “Delegated.” The conditions by which a workout may qualify under the Delegated Program are specified in this section. Any workouts that do not meet these requirements must be submitted to Radian’s Loss Mitigation Department for prior written approval .

Radian reserves the right to request any documentation related to delegated and non-delegated loan workout transactions for audit purposes. Radian also reserves the right to modify or discontinue approval authority under the delegated loan workout program at any time.

Any workouts that do not meet the Delegated Loan Workout requirements must be submitted to Radian’s Claims Department for prior approval.

Loan Workout Philosophy3 .1

A . Loan Workout SpecialistRadian practices a collaborative and proactive loss mitigation philosophy with respect to servicing of its insured mortgages. Radian’s Loan Workout Specialists may

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Default and Claims Servicing Guide | Loan Workouts

communicate with loan servicers, borrowers, attorneys, Realtors, investors and others needed to facilitate the most desirable result for all involved.

B . Early InterventionEarly intervention is a key to many successful workouts. Ideally, every loan should be reviewed for a potential workout once it has been determined to be uncollectible and/or prior to referring it to foreclosure. Before a Loan Workout Specialist contacts a borrower, it is helpful to gather information about the borrower in order to have an idea about how receptive they may be. By reviewing the original mortgage application, useful information may be gained about whether a proposed workout solution will be of interest to the borrower. The application can also assist servicers in contacting hard-to-reach mortgagors, co-mortgagors or guarantors whose names may not be displayed on the loan servicer’s computer system.

Collectors, Foreclosure Processors, Bankruptcy Servicers and Customer Service Representatives should be trained to recognize loan workout opportunities. Procedural attention flags strategically placed through the default servicing process may present viable loan workout opportunities before reaching the point of REO losses.

Generally, if a collector cannot either establish a promise of full reinstatement or a specific forbearance agreement with the borrower, and the loan is likely to produce a loss at the time it becomes REO, a loan workout should be attempted.

In the event any borrower requests a deed-in-lieu (DIL), modification, assumption, pre-sale, or any other relief from the mortgage obligation, Radian strongly encourages that the request is evaluated to determine the appropriate resolution.

C . Asset ValueThe value of the property may be established by submitting a copy of a Broker’s Price Opinion to Radian.

D . Borrower ContactOnce contact with the borrower has been established, the servicer should determine the reason for default, the borrower’s basic financial circumstances, and their willingness to participate in a portion of the loss resulting from a workout solution.

Servicers should discuss with the borrower all the potential ramifications of foreclosure including, but not limited to, credit and tax consequences and applicable state deficiency judgment liability. If the borrower is unable to keep the property, a discussion of short sale or deed in lieu options is recommended. It is especially important that the borrower is informed as early as possible in the discussion that a mortgage insurer may require the borrower to participate financially in the workout process by contributing cash and/or executing a promissory note to repay a reasonable portion of the loss associated with the workout plan.


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Delegated Loss Mitigation Authority3 .2

Radian encourages any and all activities to mitigate loss. Below is a table that lists delegated loss mitigation authority guidelines. For most non-liquidating workouts (repay plans, modifications, forbearance plans, etc.) the servicer has 100% delegated authority to structure and finalize a workout. For liquidating workouts (deeds in lieu of foreclosure and short sales) the servicer has the authority to finalize a transaction provided certain requirements are met.

Below is a table that lists delegated loss mitigation authority guidelines by workout program, coverage type, program and notification requirements.

1st Lien Product: Delegated Loss Mitigation Approval Program Guidelines 3 .2010

Radian values the servicer’s and or insured’s efforts to mitigate loss. It is Radian’s policy to facilitate these efforts by allowing the servicer and/or insured to exercise their independent and prudent judgment in providing options to borrower(s) that provide the assistance needed to resolve a default situation.

Workout Type Coverage Type Delegated Program Requirements Radian Notification RequirementsRepayment Plan Primary and Pool 100% Delegated Authority Standard Default ReportingForbearance Plan Primary and Pool 100% Delegated Authority Standard Default ReportingPartial Reinstatement Primary and Pool 100% Delegated Authority Standard Default ReportingStipulation Agreement Primary and Pool 100% Delegated Authority Standard Default ReportingModification Primary and Pool 100% Delegated Authority provided the following

commonsense guidelines are met:•Modificationtermsmustresolvedefaultsituation.• Monthlypaymentmustbeaffordablefortheborrower.• RadianwilllimitcoveragetothemodifiedUPBuptothe

original loan amount.•Modificationtermscannotreleaseanyportionofthe

collateral (property).

After modification completed submit modified terms to [email protected] or fax to 215.231.2843

FastAdvance Primary Only Contact Radian Loss Mitigation for program explanation, guidelines and instructions.

Email [email protected] or call 800.523.1988, ext. 1555

Pre-Foreclosure Sale Primary Only • Loanmustbe60daysormorepastdue.• NetProceedstobenolessthan90%offair

market value.• Lossfromsalenottoexceed50%ofcoverage

(total mortgage debt X percentage coverage X 50%).• Lossfromsalenottoexceed$30,000.

Notify Radian Claims of sale results at time of claim filing (copy of final HUD1 settlement statement may be required).

Deed in Lieu of Foreclosure

Primary Only • Loanmustbe60daysormorepastdue.• Propertymustbelistedatfairmarketvalueforatleast

90 days (unless the primary borrower is deceased).• Allliableborrowershavebeendischargedfroma

Chapter 7 bankruptcy.• Propertymustbeowneroccupied(investment

properties ineligible).•MaximumRadianclaimpaymentis$30,000.• Deedinlieuofforeclosuremustbereportedtocredit

repositories and IRS.

Notify Radian Claims that title acquired via deed in lieu at time of claim filing.

Assumption Primary and Pool •MinimumDownPayment5%ofpurchaseprice.• Existingborrower(s)cannotbereleasedfromliability.• Loanmustbebroughtcurrentattimeofassumption.

Notify Radian Customer Service of assumption terms and new borrower information.

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Home Affordable Modification Program (HAMP) 3 .3

RadiansupportsloanmodificationswithintheTreasury’sHomeAffordableModificationProgram(HAMP)andanumberofGSEprograms.AsampleNotification of Mortgage Insurance Modification can be found in the form appendix in this guide, page 43. For additional information on Performing Modification and Refinance Programs, please refer to the Servicer’s Guide.

Streamlined Information Requirements3 .4

Radian understands that time is of the essence when pursuing and evaluating loss mitigation opportunities. This is particularly true for time-sensitive liquidating workout programs such as short sales and deeds in lieu of foreclosure. For a short sale or deed in lieu of foreclosure, the Servicer must inform the borrower(s) as early as possible in the workout stage that the mortgage insurer may require a cash contribution or the execution of a promissory note for a portion of the loss in exchange for an approval of the workout. If required by the situation, a Radian Loss Mitigation Specialist can discuss approval requirements by talking directly with the borrower, borrower’s attorney, Realtor or other individual.

To facilitate the servicer’s submission of these workout programs for review, Radian requires only key information that can easily be communicated via secure email. See below for information requirements by workout program.

In addition, please refer to Appendix II, Exhibit D, page 53 for more information concerning pre-foreclosure property sales .

1st Lien – Loss Mitigation Streamlined Short Sale Information Requirements

Submit, via secure email, to a Radian Loss Mitigation Specialist the following information:

• YourLoanNumber

• RadianCertificateNumber

• Borrower(s)LastName(s)

• NextPaymentDueDate

• UnpaidPrincipalBalance(UPB)

• TotalMortgageDebt(UPB,pastdueinterest,costs,advances,etc.)

• ForeclosureSaleDate(ifapplicable)

• PropertyValue,ValueDateandValueType(BPO,Appraisal,AVM,etc.)

• RecommendedListPrice/PurchaseAmount


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• NameandPhoneNumberofRealtor(ListingAgent)

• EstimatedNetProceeds

• AnticipatedClosingDate(ifknown)

• ReasonforDefault(ifknown)

• Anymaterialinformationthatyoubelieveshouldbedisclosedtofacilitateadecision.

• Nameandphonenumberofsubmitter

Additional information may be required to make a decision. Radian Loss Mitigation has the resources in place to respond to your request(s) within two business days.

1st Lien Product – Loss Mitigation Streamlined Deed in Lieu of Foreclosure Information Requirements

Submit to a Radian Loss Mitigation Specialist via secure email the following information:

• YourLoanNumber

• RadianCertificateNumber

• Borrower(s)LastName(s)

• NextPaymentDueDate

• UnpaidPrincipalBalance(UPB)

• EstimatedTotalMortgageDebt(UPB,pastdueinterest,costs,advances,etc.)

• PropertyValue,DateandType(BPO,Appraisal,AVM,etc.)

• IsthePropertylistedforSale?Ifyes,whatisthecurrentaskingprice?

• Reasonfordefault(briefdescription)

• Nameandphonenumberofsubmitter

• Anymaterialinformationthatshouldbedisclosedtofacilitateadecision

Additional information may be required to make a decision. Radian Loss Mitigation has the resources in place to respond to your request(s) within two business days.

Radian 3 .5 FastAdvance

FastAdvance®

What does this Radian loss mitigation program do for you?• Provides“nohassle”accesstopre-claimmortgageinsurancefundstofacilitateexisting

workout programs while building a relationship with your customer, the borrower.

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• Theservicermakesthedecision…useFastAdvance in whatever manner deemed appropriate. No Radian approvals required provided a few simple program guidelines have been met.

• Frontlineservicingspecialistshaveenhancedflexibilitytocustomizelong-termdefault resolutions.

• WorkouttimingissuesminimizedsinceRadianadvance(cash)deliveredwithin10 business days of the request.

Example of how FastAdvance can be used

• Reinstatement – Borrower cannot afford a repayment arrangement but has demonstrated the ability and desire to resume timely remittances. Example: $6,000 past due, Borrower has $3,000 to be applied to past due amounts. Request a $3,000 FastAdvance for a full reinstatement.

• Repayment Plan – Borrower needs assistance to meet repayment plan guidelines Example: $8,000 past due. Situation requires $2,500 to be applied to past due amounts to structure an affordable plan. Request a $2,500 FastAdvance.

• Modification – Cash needed to structure a modification that meets guidelines and provides the borrower with affordable assistance. Example: $10,000 past due. Payment must be reduced to provide a long-term resolution. Reduce the interest rate and request a $7,500 FastAdvance to minimize the amount capitalized.

• “Buy-Down” – A modification is not viable although the borrower has the resources to reinstate fully and maintain the monthly payment reduced by $300. Example: Request a $7,200 FastAdvance, place it in a suspense account and debit it by $300 a month for the next 2 years to supplement the regular monthly payment.

• “Buy-Down” and Modification – Resolution of a severe negative equity, default situation requires significant assistance to address past due amounts and the need for a reduced monthly payment. Example: Capitalize past due amounts, reduce the interest rate and request the maximum FastAdvance amount to lower the monthly payment to the desired level.

How to get a FastAdvance:

1) Request a FastAdvance Claim Form from Radian Loss Mitigation via email [email protected] or call 800.523.1988, ext. 1555.

2) Simply complete, save and email the FastAdvance Claim Form to [email protected].


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Radian FastAdvance® Servicer Quick Reference Guide

Servicer is 100% delegated to use FastAdvance provided the following program requirements are met:

• Fundsmustbeusedtofacilitatealoanretentionworkoutdesignedtoreinstatetheloan.

• LoanmusthaveRadianprimarycoverage(poolandmodifiedpoolineligible).

• Loanmustbeatleastthreepaymentspastdue(i.e.,apaymentdueonAugust1stiseligible for FastAdvance on October 2nd).

• 12paymentsormoremusthavebeenreceived.

• Requestanadvanceupto15%ofcoverage(UPB+pastdueinterestx coverage %).

• FastAdvance amount cannot exceed $15,000.

• BorrowerrepaymentofFastAdvance not required.

• LTVmustbe80%orgreater(AVM,BPOorappraisalvalueusedtodetermineLTV must be no more than six months prior to the date the FastAdvance form is submitted to Radian.)

• Oneadvancepercertificate(loan).

• Theadvanceamountwillbedeductedfromafutureclaimpayment.

• FastAdvance is subject to the investor’s policy on mortgage insurer pre-claim advances.

Want a Radian FastAdvance®???

• Email a completed Radian FastAdvance Claim Form to fastadvance@radian .biz

• Questions? Call 800 523 .1988, ext . 1555 or email fastadvance@radian .biz

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Radian FastAdvance® Quick Reference Guide – Do’s and Don’ts

Do use Radian FastAdvance for:

• “BuyDown”fundsplacedinasuspenseaccount,appliedmonthlytoreducethepayment over a specified time frame (12, 24, or 36 months). Used in conjunction with a modification that reduces the P&I payment, “buy down” funds provide considerable assistance. Great for negative equity situations!

• Situationswhereamodificationthatcapitalizespastdueamountsisnotviable.

• Situationswheretheborrowerisinapositiontoremitasignificantportionofthepastdue amounts (35% or more) but does not have the ability to afford a repayment arrangement.

Do not use Radian FastAdvance for:

• Situationswherearequiredborrowermonetarycontributionhasnotyetbeenreceived.

• Paymentofallpastdueamountswhentheborrowerisnotparticipatingwitha monetary contribution.

• Situationswheretheborrowerhasnotdemonstratedtheabilityordesiretomaintain the existing or modified monthly payment.

• Loans120daysormorepastdueandtheborrowerhasnofundstocontribute.(It is recommended that for these situations you set up a three-month “trial plan” to validate the borrower’s ability to pay.)

Bankruptcy and Workouts3 .6

Many of the largest foreclosure losses are from loans that were in bankruptcy prior to and/or during the foreclosure. While often overlooked as potential workout candidates, bankruptcy workouts can lead to substantial savings.

A Chapter 7 bankruptcy is a liquidation of the debtor’s assets and erases unsecured debt. Therefore, borrowers who defaulted on their mortgage because they were overextended may be in a good position to maintain the mortgage after filing a Chapter 7 and being discharged from all other debts. If contact with the borrower(s), or their attorney, determines a desire to keep the property, then the Servicer can obtain financial documentation and set the borrower on a repayment plan for the purposes of re-establishing a current status. If necessary, this approach can be combined with a modification and/or a Radian FastAdvance. The Servicer’s attorney may recommend a reaffirmation agreement, but one is not necessary to complete the workout. In a situation where the debtor does not intend or desire to keep the property, a pre-foreclosure sale may mitigate the loss.


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Chapter 11 and 13 bankruptcy filings are a reorganization of debt using a repayment plan, and are intended to allow an opportunity for the debtors to bring their accounts current. If they do not, the debtors or their attorney should be approached for possible alternatives. Constant monitoring of bankruptcy cases and filing prompt notices for relief can prevent the total indebtedness from increasing unnecessarily.

Financial Forms/Documentation3 .7

Radian requires only key information for workout situations that fall outside of delegated authority (see Subsection 3.4, Streamlined Information Requirements, page 20).However,Radian reserves the right to require additional information and or documentation if needed to make a decision. Radian accepts any financial form that includes the borrower’s income, expenses, assets and liabilities. If the investor is Fannie Mae/Freddie Mac, the Fannie Mae workout plan or Freddie Mac Business Plan (if applicable) should accompany workout proposals. Radian may require a copy of the borrower’s hardship letter, recent W-2s and federal income tax returns to make a decision.

Additionally, Radian may require a copy of the Servicer’s BPO or appraisal. For short sales, Radian may also require a copy of the purchase agreement and/or an estimate of seller costs.

Deficiency Judgments3 .8

In the context of residential mortgage servicing, a deficiency is the difference between the amount of the mortgage indebtedness and any lesser amount recovered by the mortgagee from the foreclosure sale. Deficiency laws vary according to the state in which the property is located. It is important that Loan Workout Specialists, as well as Collectors and Foreclosure Representatives, understand the impact of local deficiency laws. Informing the borrower about this potential default repercussion may motivate the borrower to reinstate or cooperate in a loan workout. In states where deficiency is permitted, a deficiency should be established, and depending on the financial profile of the mortgagor, consideration should be given to pursuing collection of the deficiency.

Radian subrogates to the lender’s rights to pursue a deficiency. On Radian insured loans, we reserve the right to pursue borrowers directly where permitted by state law. These rights should be preserved and protected by the lender when instructed to do so by a Radian representative.

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Default and Claims Servicing Guide | Claims Procedures

Claims Procedures4

Claims Filing Format4 .1

When it becomes necessary to file a claim, it is important to comply with the following procedures. Timely and accurate filing is essential to expedite the claims payment process. Radian strives to work with lenders to settle claims promptly and fairly. It is our goal to enable lenders to minimize their losses from defaulted loans.

A . Electronic Submission Set-UpClaims can be filed electronically through Radian’s MI Online (via radian.biz or radianmi.com) or using the industry standard 260 transaction. Electronic or on-line filing is required to utilize our on-line EOB function.

If you have not established an account with Radian’s MI Online, simply visit our web site at www.radian.biz and click on the mortgage insurance link. Next, select MI Online for instructions for creating an account to file claims. Radian’s AVP of Default Reporting can assist with instructions.

B . Electronic Claim FormsA sample Claim for Loss form can be found in the form appendix in this guide, page 37. The generic Claim for Loss form approved by the Mortgage Insurance Companies of America (MICA) and the Mortgage Bankers Association (MBA) may also be used. For specific instructions for electronic file transmissions, or to send Radian an email notification of a claim filing, please contact Radian’s AVP of Default Reporting, Larry Corner, at [email protected].

C . Pre-Printed Forms (Waiver Required)In appropriate circumstances, Radian will consider a waiver to electronic filing. In these instances, Radian recommends using a standard Claim for Loss form approved by the Mortgage Insurance Companies of America (MICA) and the Mortgage Bankers Association (MBA). A sample can be found in the form appendix of this guide, page 37. Any waiver of electronic filing must be approved by Radian’s AVP of Default Reporting. In order to use Radian’s on-line Explanation of Benefits (EOB) function, claims must be filed electronically.

Claims Filing4 .2

A . When to FilePrimary Insurance


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27 Default and Claims Servicing Guide | Claims Procedures

Generally, a Claim for Loss should be filed with Radian within 60 days after title is obtained through a foreclosure sale. This time frame may vary depending on coverage terms, and the Servicer should refer to the specific policy.

See Appendix II, Exhibit C, page 51

Pool InsuranceGenerally, a Claim for Loss should be filed with Radian within 60 days after closing on the sale of the REO property. This time frame may vary depending on coverage terms, and the Servicer should refer to the specific policy. A copy of the settlement statement from sale of the REO property must be included with the Claim for Loss.

B . Voluntary ConveyanceIf the title was acquired through a voluntary conveyance, the 60-day period will begin when the borrower signs the deed.

C . Prior to Expiration of Redemption PeriodA claim may be filed prior to the expiration of the redemption period; however, the claim filing period will not begin until the expiration of the redemption period.

D . ExtensionsAn extension of the 60-day claim filing period may be requested. Submit the request in writing to Radian’s corporate Claims Department before the 60-day period expires.

Access to the Property4 .3

If requested, Radian representatives must be allowed access to the property to determine the property condition and value.

Eviction of Tenants4 .4

In some cases, holdover tenants or mortgagors may still be occupying the property after foreclosure sale. In these cases, the lender must start legal proceedings to evict them in accordance with the requirements of state law.

A . Filing of Claim before EvictionA Claim for Loss may be filed before getting physical possession.

B . Rents ReceivedRents received before and after foreclosure mitigate loss for all parties, and therefore shall be deducted from any Claim for Loss filed.

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Default and Claims Servicing Guide | Claims Procedures

Sale of REO Property/Duty to Cooperate4 .5

During the 60-day claim-filing period, every effort should be made to sell the property. Servicers have an obligation to promptly list the REO and shall include diligent efforts to market any property once they have obtained REO title.

Please refer to Appendix II, Exhibit D, page 53

A . Listing the Property For SaleAfter obtaining title, the Insured must submit for approval any offer that might be acceptable to the Insurer. A failure to submit an offer for approval may result in an adjustment of the claim for loss.

In order to protect their interest, the Insured’s listing agreement should contain a clause precluding payment of a real estate sales commission if Radian exercises its options to purchase the property as more fully described in Condition Twelve-A, paragraph 1 of Radian’s Master Policy.

B . REO Purchase OffersPrimary InsuranceAny offer for sale of the insured property must be submitted to the Radian’s REO Administration Department up to the time of claim payment. These submissions can be emailed to [email protected].

Pool InsuranceRadian has the right to approve the marketing plan, including listing price, adjustments, etc. Any modification to the marketing plan must be approved by Radian. Submissions for pool insured loans can be emailed to [email protected]. The final sale must be approved along with verification of consistency with the prior approved marketing plan.


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29 Default and Claims Servicing Guide | Components for a Claim for Loss

Components for a Claim for Loss5

In order to process the Claim for Loss, certain information is necessary.

A complete Claim for Loss contains all the information and proof reasonably required by the company to evaluate its liability in the particular case. The information must be on a properly approved form, as set forth in Section 4, page 26.

Documents Needed for a Complete Claim for Loss5 .1

• TheCompanywillrequestanyadditionaldocumentationrequiredtocompletethe claim review.

• IftheCompanyelectstopurchasetheproperty,provideevidencethatthelenderhasacquired and can convey Merchantable Title.

• OnPoolInsuranceloans,acopyoftheHUD-1detailingallbuyerandsellerexpensesfor sale of the REO is required in order to perfect the claim.

Alternative Mortgage Forms5 .2

If the claim is for any mortgage instrument other than the standard level payment amortizing type, including those with adjustable rates, a copy of the mortgage note must accompany the Claim for Loss form along with an explanation of the repayment feature.

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Default and Claims Servicing Guide | Limitation of Coverage

Limitation of Coverage6

Radian’s coverage is limited to the normal risk of a default caused by a change in the borrower’s economic circumstances. It does not extend to other risks, such as those from casualty, title problems or fraud.

The lender should contact a Radian Loss Mitigation Specialist to obtain Radian’s prior consent for any of the following:

• Anyreleaseofanyborrowerfromliabilityfortheloan,includinganyloanprincipal forgiveness.

• Anyassumptionofliabilityfortheloanwithreleaseoftheoriginalborrowerfromliability.

• Anyreleaseofthecollateraloranypartialreleaseofthecollateral.

• Anychangeinthecharacteroruseoftheproperty(forexample,theconversionofa single-family home into a commercial property).

• AnytransferorsaleoftheservicingoftheloantoacompanynotapprovedbyRadian.

If any of the above conditions occur without Radian’s prior consent, Radian may terminate coverage without notice, subject to the terms of the Master Policy.


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31 Default and Claims Servicing Guide | Exclusions from Coverage

Exclusions from Coverage7

The occurrence of any of the following conditions will result in exclusion of coverage:

• Anylossresultingfromthelenderexercisingitsrighttoacceleratetheloanbasedonaballoonpaymentclauseintheloandocument.However,iftheborrowerrefusestoaccept an extension or renewal of the mortgage terms at market rates from the lender, this condition will not apply.

• AnylossonaloanwhichwasdelinquentpriortoRadianissuinginsurance coverage on that loan.

• Anylossastheresultofincompleteconstructionoftheinsuredproperty.

• AnylossresultingfromfraudormisrepresentationofamaterialfactonwhichRadian based its decision to insure the loan.

• Anylossresultingfromnegligenceintheoriginationorservicingoftheloan.

• Anycostorexpensetorepairanyphysicaldamageresultingfrom:- Contamination by toxic waste or hazardous water.- Earthquake, flood, or other act of God.- Civil war or riot.- Any defects in the construction not identified in the Application for Insurance.

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Default and Claims Servicing Guide | Claim Settlement

Claim Settlement8

Under Radian’s Master Policy of Insurance, and various structured Pool Policies, Radian has several options in calculating its liability.

In addition, there are various time limits within which the lender must provide information, and within which Radian must process the Claim for Loss.

Once a claim has been filed, any questions regarding its status must be directed to Radian’s corporate Claims Department (Refer to Appendix II, Exhibit G, page 58).

See Appendix II, Exhibit C, page 51

Timing of Claim Settlement8 .1

Radian will pay a claim within 60 days after all required documentation is submitted, subject to the following conditions and requirements:

A . Additional DocumentationRadian may request additional documentation within 20 days of the filing date of the initial claim. Until Radian receives the additional documentation, the 60-day limit will be suspended.

B . AccessIf Radian seeks access to the property, the 60-day period will be suspended until access is made available.

C . AcquisitionIf Radian elects to acquire the property, the 60-day period shall be extended insofar as necessary for there to be 10 days remaining after the insured tenders Merchantable Title to Radian.

D . SIU InvestigationsIf the claim is chosen for a quality policy compliance audit, the timeline for payment of the claim shall be extended by an additional 120 days.

E . Late PaymentIf Radian does not pay the claim within 60 days, subject to the above conditions, simple interest will be paid at the note rate accruing from the settlement due date.


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33 Default and Claims Servicing Guide | Claim Settlement

Timing of Claim Settlement Under Structured Pool Policies8 .2

The Insured should refer to its applicable policy for terms on claim settlement under structured Pool Policies. Questions on status and terms must be directed to Radian’s corporate Claim Department. (Refer to Appendix II, Exhibit G, page 58)

34

Appendix I – Forms

35

Notice of Default

RAF104 4/10

Notice of Default

Radian Guaranty Inc. · 1601 Market Street · Philadelphia, Pennsylvania · 19103 800.523.1988 · fax 215.231.2846

Radian’s Master Policy contains certain requirements regarding the submission of this Notice of Default. Failure to comply with

the submission requirements of your Master Policy may preclude or diminish a subsequent claim. After submission of the initial

Notice of Default, monthly reports concerning the status of the loan and servicing efforts are required.

Lender

Name

Radian lender I.D. number

Street address

Street Lender loan number

City, state and zip

City State Zip code

Borrower(s)

Full name(s)—as shown on title

Last First Middle Radian certificate number

Address of insured property

Street Primary Borrower’s Social Security number

City, county, state and zip

City County State Zip code

Description

Current unpaid principal balance $

Occupancy status Vacant Owner Tenant

Delinquent taxes, insurance, etc. $

Condition of property Poor Fair Excellent

Total amount of delinquency $

If tenant occupied, has rent been assigned? Yes No

Next payment due date

Date of last inspection

Month Day Year

Reason for delinquency 01. Death 02. Illness 03. Marital problems

04. Unemployment 05. Business failure 06. Temporary loss of income

07. Bankruptcy 08. Excessive use of credit 09. Casualty loss

10. Moved/Vacated 11. Dissatisfied with property 12. Energy/Environment cost

13. Other

14. Auto repairs 15. See comments 16. Internal/Servicer problems

How can foreclosure be prevented? Waive principal payments temporarily Short term assistance program from Radian Recast loan

Recommend borrower list property for sale Voluntary conveyance Forebearance agreement

Foreclosure should begin — no resolution possible

Borrower contact Servicer attempts to contact

Date(s)

Borrower’s phone numbers

Area code Phone number (Home) Area code Phone number (Business)

Conversation with borrowers

Results

If Co-Borrower is on title, was contact attempted? Yes No

Lender’s authorized representative

Name and title (please type or print) Area code Phone number

Signature Date

SAMPLE

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Monthly Delinquency Report

RAF113 5/00

MONTHLY DELINQUENCY REPORT

1601 MARKET STREET DATE: MAY 01, 2000 PHILADELPHIA, PENNSYLVANIA 19103 (215) 564-6600 NATL. WATS (1-877-723-4261) 12345000 ATTN: John Doe First Bank Mortgage P.O. Box 33456 Louisville, NY 12452-1324

————————————————————————————————————————— THE FOLLOWING IS OUR REPORT OF A LOAN PREVIOUSLY REPORTED BY NOTICE OF DEFAULT: BORROWER: Majors, Robert YOUR LOAN NUMBER 124263 Majors, Laura RADIAN CERTIFICATE NUMBER 76110243 914 Volcano Street RADIAN DEFAULT NUMBER 08.9585 Helena, MT 34267

1. ACCOUNT STATUS 4. PROPERTY CONDITION DUE DATE __________ OCCUPANCY STATUS: AMOUNT OF MONTHLY PAYMENT __________ OWNER TENANT VACANT __________ PRINCIPAL BALANCE __________ DATE OF LAST INSPECTION __________ TOTAL AMOUNT DELINQUENT __________ CONDITION OF PROPERTY: LAST PAID DATE __________ POOR GOOD EXCELLENT __________ FAIR MARKET VALUE __________

2. FORECLOSURE DATE ACCOUNT REFERRED TO 5. BORROWER CONTACT ATTORNEY __________ DATE COMPLAINT FILED __________ LAST CONTACT WITH BORROWER __________ DATE SUBSTITUTE TRUSTEE _____________________________________ APPOINTED __________ HAVE STEPS BEEN TAKEN TO CONTACT DATE JUDGMENT ENTERED __________ CO-MORTGAGOR________________________ SALE DATE SCHEDULED FOR __________ _____________________________________

SALE HELD __________ HAVE ALTERNATIVE MEASURES BEEN USED TO CURE DELINQUENCY _________________ _____________________________________ 3. BANKRUPTCY _____________________________________ DATE PETITION FILED __________ CH 13, 11, 7 __________6. REO INFORMATION IF CH 13 DATE POST PETITION REO APPRAISED VALUE $_______________ PAYMENTS BEGIN __________ REALTORS NAME _____________________ STATUS OF POST PETITION TELEPHONE # _____________________

PAYMENTS __________ ADDRESS _________________________ MOTION TO LIFT STAY FILED __________ _________________________ MOTION TO LIFT STAY GRANTED__________ LIST PRICE ______________________ 7. ADDITIONAL COMMENTS IF NECESSARY

SAMPLE

Default and Claims Servicing Guide | Forms / Monthly Delinquency Report

37

Claim For Loss

Page 1 of 2 RAF072 4/10

Claim For Loss

Radian Guaranty Inc. 1601 Market Street Philadelphia, Pennsylvania 19103-2337 800.523.1988 215.231.1000

Please type or print below. Insured lender 1. Name

Master Policy number

Address

Street City State Zip code

Loan servicer

Master Policy number

Address


Loan and Policy numbers 2.

Lender’s loan number Radian policy number

Name of borrower 3.

Last First Middle

Property address 4.


Date through which mortgage interest is paid

Preservation of property and disbursements

Month Day Year Date Description Amount

·

$

Per diem rate used $

·

$

Balance due (principal only)

as of the above date $

·

$

Straight interest from above date to date filing claim

% $

·

$

Subtotal A $

·

$

Attorney’s fees or 3% of

subtotal A, whichever is less $

·

$

*Property taxes paid

(enclose paid bills) $

·

$

*Insurance premiums advanced

(circle these amounts on Ledger Cards)

$

·

$

**Preservation of property

(utilities, normal maintenance, etc.) $

·

$

**Other disbursements

(expenses appropriate to obtaining title)

$

Total $

Subtotal B $

Less: (when applicable) Is Property Vacant Occupied

Post default receipts $

If occupied, name of occupant

Rent or other income $

Key to the property may be obtained from

Cash retained (escrows,

hypothecated funds, pledged accounts, etc.)

$

Total claim $

Less: (when applicable)

Net proceeds from authorized sale

(prior approval by Radian required) $

Adjusted claim $

*Do not include portion paid from escrow funds **Itemize in “Detail” section

(if different from above)

SAMPLE

Default and Claims Servicing Guide | Forms / Claim For Loss

38

Page 2 of 2 RAF072 4/10

The following must be submitted with this claim 1. Foreclosure Deed

2. Current evidence of merchantable title

3. Receiver’s account, if receiver appointed during foreclosure proceedings

4. Copies of mortgage ledger cards from inception of loan

5. Receipts for any disbursements

6. Paid tax bills (if advanced by mortgagee)

7. On adjustable-rate mortgages, the following are needed:

• Original note and index it is tied to

• Frequency and change rates

• Initial starting and accrual rates

REO information

REO appraised value/date $

Month Day Year

Realtor’s name/telephone

Name Area code Phone number

List price $

Signature

On behalf of the insured named above, I certify that the foregoing is a true and correct statement

of all items which may be claimed; that this claim for loss is in accord with the terms and conditions

of the Master Policy; and that said insured has acquired merchantable title and hereby tenders same

to the Company.

Lender’s authorized representative Area code Phone number Date

SAMPLE

Default and Claims Servicing Guide | Forms / Claim For Loss

39

Delegated Pre-Foreclosure Sale Notice

Page 1 of 2 RAF114 4/10

Delegated Pre-Foreclosure Sale Notice

Radian Guaranty Inc. · 1601 Market Street · Philadelphia, Pennsylvania · 19103-2337 800.523.1988 · 215.564.6600

Please type or print below. Lender

Name

Lender ID number Loan number Radian certificate number

Street address

Street

City, state and zip

City State Zip code

Investor

Name

Investor number

Borrower

Name

Last First Middle

Street address

Street

City, state and zip

City State Zip code

Sales Terms

Sales price

Original appraised value

Net proceeds

Closing date

BPO value

BPO date:

Borrower contribution Cash:

Note:

(excluding late fees)

Additional information

Program Guidelines

Minimum net proceeds to be no less than 90% of fair market value.

Radian claim payment limited to 50% of percentage option (total allowable claim x coverage % x .50).

Maximum delegated claim payment is $30,000.

Reported to credit repositories and IRS.

Borrower participation not required; however, it is strongly encouraged in each pre-foreclosure sale.

Required documentation to accompany this notice:

• Copy of the final HUD-1 settlement statement

• Copy of the payoff statement calculated through the date of closing

• FNMA Workout Plan, FHLMC Business Plan or other similar proprietary workout proposal plan

• Executed Promissory Note (if applicable)

Total debt at closing

Primary Insurance only

SAMPLE

Default and Claims Servicing Guide | Forms / Delegated Pre-Foreclosure Sale Notice

40

Page 2 of 2 RAF114 4/10

Signatures

The undersigned lender represents and certifies that the above information is correct and complete and

acknowledges that continuation of mortgage insurance coverage by Radian is provided in reliance upon

the representations noted above.

By

Lender’s authorized representative Date

Print name

Area code Phone number Lender’s fax number

Acknowledged by

Radian Workout Specialist Date

Print name

Area code Phone number Specialist’s fax number

SAMPLE

Default and Claims Servicing Guide | Forms / Delegated Pre-Foreclosure Sale Notice

41

Delegated Loan Modification Notice

Page 1 of 2 RAF115 4/10

Delegated Loan Modification Notice

Radian Guaranty Inc. · 1601 Market Street · Philadelphia, Pennsylvania · 19103-2337 800.523.1988 · 215.564.6600

Please type or print below. Lender

Name

Lender ID number Loan number Radian certificate number

Street address

Street

City, state and zip

City State Zip code

Investor

Name

Investor number

Borrower

Name

Last First Middle

Street address

Street

City, state and zip

City State Zip code

Modification Terms Existing loan Modified loan

P&I

·

PITI

·

Loan balance

·

Interest rate

·

Term

·

Loan type (ARM Fixed)

·

Effective date of modification

First modified payment due date

Borrower contribution

BPO value

BPO date:

Additional information

(reason for default, etc)

Program Guidelines

Radian will limit coverage to the modified unpaid principal balance up to the original loan amount.

Any future claim will be based on the outstanding principal balance up to, but not to exceed the original loan amount.

This form should be submitted within 15 days after the modification agreement is executed

SAMPLE

Default and Claims Servicing Guide | Forms / Delegated Loan Modification Notice

42

Page 2 of 2 RAF115 4/10

Signatures

The undersigned lender represents and certifies that the above information is correct and complete and

acknowledges that continuation of mortgage insurance coverage by Radian is provided in reliance upon

the representations noted above.

By

Lender’s authorized representative Date

Print name

Area code Phone number Email address Lender’s fax number

Acknowledged by

Radian Workout Specialist Date

Print name

Area code Phone number Email address Specialist’s fax number

SAMPLE

Default and Claims Servicing Guide | Forms / Delegated Loan Modification Notice

43

Notification of Mortgage Insurance Modification

RAF385 4/10

Notification of Mortgage Insurance Modification (For use with Same Servicer performing and non-performing loan modifications and refinances)

Radian Guaranty Inc. · 1601 Market Street · Philadelphia, PA 19103-2337 Send a secure email to: [email protected] Phone: 877.723.4261 Fax to: 866.326.7708

Servicer/Lender Name

Borrower Name(s) (Last, First, Middle)

Street Address

Property Street Address

City, State, Zip

Property City, State, Zip

Radian Lender ID Number

Existing Loan Number

New Loan Number (if refinance)

Radian Existing Certificate Number

Program Name

Fannie Mae DU Refi Plus™ (HARP)

Fannie Mae Refi Plus™ (HARP)

The following programs require a spreadsheet submission.

Please refer to www.radian.biz for details:

Freddie Mac Relief Refinance MortgageSM (HARP) • Fannie Mae Home Affordable Modification Program (HMP)

Freddie Mac Relief Refinance MortgageSM – Open Access (HARP) • Freddie Mac Home Affordable Modification Program (HMP)

Non GSE Refinance Modification • HomeSaver Forbearance (HSF)

Standard Delegated Performing Modification

Standard Delegated Default Modification Other

Loan Terms If Modified/Refinanced Loan is an ARM: Existing Modified/New Loan Months to first rate adjustment

P&I

Months to first payment adjustment

PITI

Months between adjustments

Loan Balance

Initial adjustment rate cap percent

Interest Rate

Subsequent adjustments rate cap percent

Term

Lifetime rate cap percent

Loan Type (Fixed, ARM, Step Rate)

Margin

Interest Only Term

Index Name

Potential Neg. Amortization (Y/N)

If Modified/Refinanced Loan is a step rate:

Balloon (Y/N)

Rate (%) Term (Months)

Balloon Term

1st

Balloon Amount

2nd

Occupancy Type

3rd

4th

5th

Is the loan current? Yes No If No, supply due date:

Has Modification/Refinance closed? Yes No

Closing date of Modification/Refinance:

First payment due date:

Complete this section if program is a HARP or Non GSE Refinance Modification:

Initial to represent and warrant: Property Value is supported and based on:

Loan meets all program documentation requirements New exterior appraisal Property Fieldwork Waiver

Loan meets all program eligibility requirements New full appraisal Home Value Explorer®

Loan meets all program underwriting requirements Original appraisal (property value is not less than the original appraised value)

Other

Prior Approval: Any modification or material change in the terms of the loan

including, but not limited to, the borrowed amount, interest rate, term of

amortization schedule (except as permitted by the terms of the Loan) requires

Radian’s prior written approval, except as described in “Notification” below:

Notification: Performing loan modifications that meet Radian’s delegated

performing loan modification guidelines do not need Radian’s prior written

approval. However, Radian must be notified of these changes. All other modifications

that meet delegated loss mitigation (loan workout) guidelines, reduce the interest

rate, eliminate negative amortization, or change an adjustable payment mortgage to

a fixed payment mortgage with a lower monthly payment, do not need Radian’s

prior written approval. However, Radian must be notified of these changes. For

information regarding delegated modification programs go to www.radian.biz.

The undersigned lender represents and certifies that the above information is correct and complete, and acknowledges that

continuation of mortgage insurance coverage by Radian is provided in reliance upon the representation noted above.

By

Servicer/Lender’s authorized representative (Area Code) Phone Number Date

Print Name Email Address Lender’s Fax Number

Please indicate preferred delivery method for acknowledgements: Email Fax

SAMPLE

Default and Claims Servicing Guide | Forms / Notification of Mortgage Insurance Modification

44 Default and Claims Servicing Guide | Forms / FastAdvance Batch Request – Contact Info

BATCH REQUEST FORMPlease complete contact information for your batch FASTADVANCE request

Servicer Name

If Wire, Please include:Bank Name

ABA#

Account #

Phone Number

Reference Information

Contact InformationSubmitted By

Date Submitted

Phone Number Phone Number required for Express Mail Delivery

Address Street Address required Express Mail Delivery (no P.O. Boxes)

City

State

Zip

SAMPLE

FastAdvance® Batch Request – Contact Info

45 Default and Claims Servicing Guide | Forms / FastAdvance Batch Request – Batch Data

Please complete all the information below and e mail via attachment to: [email protected] BATCH REQUEST FORM

#

Radian Certificate #

Loan Number

Next Payment Due Date

Unpaid Principal Balance

Past Due

Interest TotalProperty

ValueValue Type

Value Date LTV

Total UPB + Past Due Int

Certificate Coverage % Total

Max Claim

Advance

Reason for

DefaultWorkout

Type

Dollar Amount

Requested

1 -$ -$ -$ -$ -- -$ 0.00% -$ -$ Second Look -$

2 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

3 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

4 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

5 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

6 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

7 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

8 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

9 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

10 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

11 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

12 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

13 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

14 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

15 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

16 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

17 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

18 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

19 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

20 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

21 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

22 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

23 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

24 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

25 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

26 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

27 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

28 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

29 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

30 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

31 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

32 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

33 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

34 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

35 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

36 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

37 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

38 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

39 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

40 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

41 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

42 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

43 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

44 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

45 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

46 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

47 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

48 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

49 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

50 -$ -$ -$ -$ -- -$ 0.00% -$ -$ -$

Loan Servicer represents and certifies that the information below is accurate and acknowledges that the amount of the requested advance shall be deducted from any future claim payment. Fast Advance program is subject to audit by Radian. Radian

reserves the right to discontinue the Fast Advance program at any time.

Advance Claim InformationGeneral Information

SAMPLE

FastAdvance® Batch Request – Batch Data

46

Appendix II – Exhibits

47

Foreclosure Bidding Instructions by StateFor Radian-insured loans owned by Fannie Mae, Radian has approved Fannie Mae’s foreclosure bidding instructions as outlined in Fannie Mae Announcement 02-04. For all other loans, and in the absence of specific foreclosure bidding instructions from Radian, the insured must bid in accordance with the following state guidelines.

* The bid must not exceed total debt . If the bid calculated according to the table above exceeds total debt, then bid total debt . Radian will not require a bid of less than the uninsured loan amount . If the recommended bid, per the table above, is less than the uninsured loan amount, the insured should bid in accordance with investor guidelines, not to exceed the uninsured loan amount. Uninsured loan amount = Total debt - (total debt x % coverage); Total debt = Total debt + attorney’s fees and costs. For questions concerning any proposed bid outside these guidelines, please call 877.723.4261, ext. 3200.

Please fax the foreclosure sales results, within 48 hours after the foreclosure sale is held, to Radian at 215.627.5624. The foreclosure sales results are to include the Radian certificate number, bid amount, foreclosure sale date, and the successful bidder.

Exhibit A

State Bidding Amount

AK Total Debt AL Total Debt AR FMV - Full value* AZ Total Debt CA FMV - Full value* CO Total Debt CT FMV - Full value* DC FMV - Full value* DE FMV - Full value* FL Open@$100uptofullFMV* GA FMV - Full value* Guam Total Debt HI FMV - Full value* IA Total Debt ID FMV - Full value* IL Total Debt IN FMV - Full value* KS Total Debt KY FMV - Full value* LA FMV - Full value* MA FMV - Full value* MD FMV - Full value* ME FMV - Full value* MI Total Debt MN Total Debt MO FMV - Full value* MS FMV - Full value*

State Bidding Amount

MT FMV - Full value* NC FMV - Full value* ND Total Debt NE FMV - Full value* NH FMV - Full value* NJ Open@$100uptofullFMV* NM Total Debt NV FMV - Full value* NY Open@$500uptofullFMV* OH FMV - Full value* OK FMV - Full value* OR FMV - Full value* PA Open @ Sheriff cost up to full FMV* Puerto Rico FMV - Full value* RI FMV - Full value* SC FMV - Full value* SD FMV - Full value* TN FMV - Full value* TX FMV - Full value* UT Total Debt VA FMV - Full value* VT FMV - Full value* WA Total Debt WI FMV - Full value* WV FMV - Full value* WY Total Debt

Default and Claims Servicing Guide | Exhibits / Foreclosure Bidding Instructions by State

48

Exhibit B

Page 1 of 3 RAF116 4/10

Promissory Note

Radian Services LLC number Principal Amount

$

Borrower(s) Name 1.

Borrower(s) Name 2.

Property Address

Address of Radian Services LLC: 1601 Market Street, Philadelphia, PA 19103

Background

1. I/We obtained a mortgage loan secured by the property identified above. The mortgage lender insured

the loan with Radian Guaranty Inc. (“Radian”), a mortgage insurance company engaged in the

business of insuring lenders against loss related to mortgage loans.

2. I/We have requested that the mortgage lender permit a sale of the property for an amount that is less

than the amount owing on the mortgage loan (a short sale, deed-in-lieu, or short refinance, collectively

“Workout Transaction”) and that Radian waive certain of its rights under the mortgage insurance

policy to enable the mortgage lender to do so.

3. I/We understand that Radian is under no obligation to waive its rights under the mortgage insurance

policy and has conditioned its willingness to do so upon my/our agreement to make the payments

contemplated by this Promissory Note on account of a portion of the unpaid balance of the mortgage

loan which this Promissory Note replaces. I/we understand that any applicable anti-deficiency statutes

enacted for my/ our protection may not be waivable, but in order to avoid foreclosure or possible

negative consequences to my/our credit, I/we have asked that Radian approve the release of lien

from my/our property in exchange for this Workout Note.

4 . I/We understand that Radian Services LLC, an affiliate of Radian, will initially administer this

Promissory Note on behalf of Radian, but that Radian may and likely will sell or assign the

Promissory Note to someone else and when it does I/we will continue to remain obligated to make

the payments required under this Promissory Note.

5. I/We understand that there may be income tax and credit report consequences to me/us with respect

to the Workout Transaction, this Promissory Note and any forgiveness of the indebtedness of the

mortgage loan or this Promissory Note and that I/we will be solely responsible for such consequences.

6. I/We acknowledge that Radian has not advised me with respect to the Workout Transaction or this

Promissory Note or the income tax or credit report consequences of either and that I/we have had

a full and fair opportunity to consult with an attorney and/or tax professional before signing this

Promissory Note and any related documents.

SAMPLE

Default and Claims Servicing Guide | Exhibits / Promissory Note

49

Page 2 of 3 RAF116 4/10

Promissory Note

Terms and Conditions Principle Amount $

A. Agreement to Pay In consideration for the actions taken by Radian on my/our behalf and at my/our request with respect

to my mortgage loan, I/we agree and promise to pay to the order of Radian $

, or any

assignee or subsequent holder of the Promissory Note, (hereinafter the “Holder”) the unpaid balance

of this Promissory Note, being a settlement of a portion of the unpaid amount due under my/our

mortgage loan. This amount represents the final settlement between me/us and Radian and upon

payment in full, will release me/us from any further obligation to Radian with respect to Radian’s loss

in connection with the above mentioned mortgage loan. I/We understand that I/we are individually

responsible for the full payment of this obligation. This means that any one of the parties who sign this

Promissory Note may be required to pay all of the amounts owed if another party does not make

payments as agreed.

B. Meaning of Some Words “I,” “me,” “we,” “our” and “my” refers to the Borrower(s) who executed and are obligated under this

Promissory Note.

C. Payments 1. I/We will pay the amount due under this Promissory Note by making monthly payments on the

1st day of each month beginning on (FRSTPMTDATE). I/We will pay every month until I/we have

paid the outstanding balance in full, and any other charges described below that I/we may owe. If

on [maturity date], I/we still owe amounts under this Promissory Note, I/we will pay the amounts

in full on that date. I/We will make monthly payments to Holder at the address listed above.

2. My/Our monthly payments will be in the amount of $

.

D. Borrower’s Right to Prepay I/We have the right to make payments of principal at any time before the date they are due

(“Prepayment”), without paying any penalty. Prepayments will be used to reduce the unpaid principal

balance under this Promissory Note, but there will be no change to the payment schedule or the

amount of the monthly payment until or unless the Promissory Note is paid in full or Holder has

agreed in writing to such a change.

E. Early Satisfaction Incentive I/We will have the option to fully satisfy this Promissory Note prior to [date] by paying, in certified

funds, [discount]% of the remaining unpaid principal balance. This settlement option is not available

if a Default (as defined in the following paragraph) has occurred.

F. Default Each of the following events will constitute a default under this Promissory Note (each a “Default”):

1. I/We fail to make any monthly payment within fifteen (15) days of the due date;

2. I/We provide you with false information or signatures at any time;

3. I/We die or become legally unable to manage my/our affairs:

4. I/We file for bankruptcy or become subject to a proceeding which seeks relief from debt; or

5. I/We violate a requirement of this Promissory Note.

G. Upon Default If a Default occurs, all amounts will automatically become due and payable without additional notice.

I/We understand that if you refrain from exercising your rights under this Promissory Note, it does not

mean you have waived them with respect to a future Default. I/We also understand that if I/we Default

on this Promissory Note and you incur costs and expenses in collecting the amount I/we owe

(including reasonable attorneys’ fees), I/we will be responsible for those additional costs. Holder may

exercise its rights against all or any party obligated under this Promissory Note.

H. Interest No interest will be charged on the outstanding balance of this Promissory Note if it is paid in full

according to its terms.

I. Late Charges If I/we fail to pay any monthly payment within fifteen (15) days of the due date, I/we agree to pay

a late charge of $

.

SAMPLE


50

Page 3 of 3 RAF116 4/10

Promissory Note

J. Additional Provisions I/We understand that any of the following activities are permitted under this Promissory Note

and will not constitute a waiver of rights by Holder, nor a requirement of prior notice:

1. Accept as a partial payment a check or other payment marked “paid in full” or “accord and

satisfaction” with similar language;

2. Permit additional time for payment of any amount owing;

3. Add or release any obligated person;

4. At Holders’ cost, periodic updates on my/our credit report may be obtained to determine

my compliance with the terms and conditions of this Promissory Note; or

5. The obligation evidenced by this Promissory Note may be reported to credit reporting agencies.

K. Change of Address All persons obligated under the Promissory Note agree to notify Holder within thirty (30) days

of a change of address.

L. Severability If any of the provisions of this Promissory Note are held by a court of competent jurisdiction to be

invalid, void or unenforceable, the remaining provisions hereof shall nevertheless continue in full

force and effect, without being impaired or invalidated in any way.

I/We understand the terms and conditions of this Promissory Note, have consulted with an advisor or

attorney prior to execution, and enter into the obligation of my/our own accord.

Signatures Date

Borrower

Date

Borrower

State of:

County of:

On this date of:

Before me,

, a Notary Public in and for

said State, personally appeared

personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s)

whose name(s) is/are subscribed to within this instrument, and acknowledged to me that he/she/they

executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on

this instrument, the person(s), or the entity upon behalf of which the person(s) acted, executed this

instrument.

WITNESS my hand and official seal

Signature:

Name:

SAMPLE


51

Exhibit C

Master Policy Time Line (Primary Coverage)Under the Master Policy, a claim should be filed with Radian within 60 days after a title is obtained through a foreclosure sale or an approved deed in lieu. A claim may be submitted to Radian for up to one year after a title is obtained. Radian may, within 20 days of filing the initial claim, request additional items necessary to complete a review of the claim. If additional documentation is requested, the processing of the claim may be delayed.

Your claim is payable within 60 days after it is perfected. A claim is considered perfected when Radian has received all necessary documentation.

If a loan is selected for a quality review, the claim payment will be delayed up to an additional 120 days. The claim will be paid, rescinded, or denied within 120 days after the Settlement Due Date.

Supplemental ClaimsAs a courtesy, Radian will process supplemental claims for allowable Advances and expenses not available at the time of claim filing, provided the supplemental claim is received within 60 days of the original claim payment.

Approved SalesPrior to the payment of a claim, an insured is required to keep Radian notified of any offer to purchase the subject property that would affect the claim. Radian will promptly review each offer and provide approval or conditions required for sale. Radian will not be able to properly calculate a claim payment on any influence sale, or a sale resulting in a reduction of the claim, until Radian has received the HUD 1 detailing the actual sale. As a result, a claim payment will be suspended until after the sale, but the insured will be paid interest to the date of the actual sale as reimbursement for the delay.

Disclaimer: This is meant to provide a general time line for important dates under Radian’s Master Policy. Specific claim circumstances might result in modifications. Please refer to the Radian Master Policy or Servicing Guide or contact a Radian representative with additional questions. Radian reserves all rights under each of its Policies and Servicing Guides.

Claims Processing Information Sheet

www.radian.biz | 877.723.4261 ©2009 Radian Guaranty Inc. 11/09

Default and Claims Servicing Guide | Exhibits / Claims Processing Information Sheet

52

Claims Adjustments

The following Advances are allowed to be included in a claim calculation: • Hazard insurance premiums paid after default, pro-rated to 60 days

after foreclosure • Real estate taxes accrued or payable after default and prior to foreclosure,

pro-rated to 60 days after foreclosure • Reasonable and normal disbursements incurred in foreclosure

(attorney fees are limited to 3% of UPB and interest) • Reasonable and normal property preservation expenses incurred after

default and 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 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 60 days after redemption/confirmation, whichever comes first

The following Advances are not allowed to be included in a claim calculation: • Insurance premiums and real estate taxes accrued and payable prior to

default and after 60 days of foreclosure • Property preservation expenses prior to default and after 60 days of

foreclosure • Trip charges • MI premiums • Penalties and interest owed on past due taxes, condominium fees,

and municipal charges • Non-approved changes to the terms on an approved sale resulting

in an unreasonable reduction in net proceeds

Other Claim Calculation Rules/Adjustments• Interest is calculated to a maximum of 60 days after the lender has

acquired title to the property • On short sales, interest is capped to date of short sale • 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

Disclaimer: This listing is representative only and not intended to answer all circumstances which may arise in the calculation of a claim. Please refer to the Radian Policy or Servicing Guide for additional information or contact a Radian Analyst if you have any questions. Radian reserves all rights under each of its Policies and Servicing Guides.

www.radian.biz | 877.723.4261 ©2009 Radian Guaranty Inc. 11/09

Default and Claims Servicing Guide | Exhibits / Claims Processing Information Sheet

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Exhibit D

Default Servicing Information CardFor Property SalesRadian’s Master Policy requires our insureds and their servicers to actively cooperate with us to mitigate losses. This information card provides guidance for various default situations resulting in a property sale/transfer.

OVERVIEW

Pre-Foreclosure Short SalePost-Foreclosure Sale:

Primary Coverage Pool Coverage

Desc

riptio

n The borrower’s sale of the property to a third-party purchaser, where the proceeds are not sufficient to fully satisfy the mortgage obligation. This occurs prior to the foreclosure sale date or expiration of the foreclosure redemption period.

The sale of the property once the insured obtains borrower’s title to the property by foreclosure or other transaction.

The sale of the insured’s real estate owned (REO) property. This transaction requires Radian approval.

Proc

edur

e

Once the mortgage servicer has obtained the information needed to consider a short sale, Radian must be immediately notified. After submitting the required information, Radian typically responds (with an approval or feedback) within two business days.

Submit REO Sale offers to: [email protected]. Submissions will be reviewed and responded to within two business days. For Influence Sales, after settlement, a copy of the final HUD 1 settlement statement is sent via secured email to [email protected] to finalize the claim. For non-influence sales a copy of the HUD-1 is not required.

Submit REO List Price approvals and Sale Offer approvals to: [email protected]. Radian typically responds (with an approval or feedback) within three business days.

Cont

act

For general information on Radian pre-foreclosure short sales, or to request an updated Radian Loss Mitigation Contact List, contact a Radian Loss Mitigation Specialist directly or our Customer Care team at 877.723.4261.

REO Analysts are assigned based upon the mortgage servicer of the claim. For more information on post-foreclosure REO Sale approvals, email to: [email protected].

For additional information on post-foreclosure sales of pool insured loans, or to speak to an REO Analyst, contact Radian via email at: [email protected].

Info

rmat

ion

Requ

irem

ents

Radian values your efforts to mitigate loss and understands that property sales are time-sensitive, which is why we have streamlined information requirements. Below are general instructions and documentation/information requirements for each transaction type. Radian reserves the right to require additional information if needed to make a decision.

Submit a pre-foreclosure short sale request via email to the assigned Radian Loss Mitigation Specialist. Radian requires the following minimum information to consider a short sale:• Loan Number • Borrower(s) Last Name(s)• Next Payment Due Date • Total Debt (Unpaid Principle Balance (UPB),

past due interest, costs, advances, etc.)• Foreclosure Sale Date (if applicable)• Property Value, Value Date, and Value Type

(Broker’s Price Opinion of Value (BPO), Appraisal, AVM, etc.)

• Purchase Amount • Net Proceeds• Anticipated Closing Date (if known)• Name and phone number of Realtor• Reason for Default (if known)• Name and phone number of submitter

The following information is submitted as an offer to the assigned REO Analyst via email at: [email protected]:• Property Address• Property Value (BPO/Appraisal) “as is”

value and repaired value• Purchase Amount• Seller concessions/credits• Net Proceeds• Anticipated Closing date• Any repair items and costs associated

to restore the property to the condition required under the Master Policy, along with any additional fees necessary to be disclosed (such as: buyers closing costs, repairs, incentive fees, excessive fees, etc.)

Submit REO strategy via email to: [email protected].• Include marketing strategy and

suggested list price.• BPO completed after the

foreclosure sale.• Appraisal Report completed after the

foreclosure sale (a second BPO is acceptable in lieu of an appraisal).

• Any repair items required to restore the property to the condition required under the Master Policy along with costs associated with such repairs.

List price adjustment should be recommended every 30–45 days. Any offer you would consider accepting should be forwarded to Radian for approval along with estimated net proceeds and anticipated closing date.

Disclaimer: This listing is not intended to address all of the circumstances which may arise in the processing of a property Sale or transfer. Specific claim circumstances require unique mitigation efforts. Please refer to the Radian Master Policy or Servicing Guide, or contact a Radian representative with additional questions. Radian reserves all rights under each of its Policies and Servicing Guides.

www.radian.biz | 877.723.4261 ©2010 Radian Guaranty Inc. RAC419 08/10

SAMPLE

Default and Claims Servicing Guide | Exhibits / Default Servicing Information Card – For Property Sales

54

Default Servicing Information CardFor Property SalesRadian’s website, www.radian.biz, provides additional information on our short sale process and philosophy. To access additional information select the Servicing Guides and Forms option from the Servicers tab.

ADDITIONAL INFORMATION

Shor

t Sal

es

Radian carefully reviews all available information when considering a short sale. Primary determining factors include the severity of the delinquency, reason for default, borrower’s desire and ability to pay other creditors and purchase amount relative to its value and seller costs. Radian short sale approvals are emailed to the Servicing Specialist that submitted the request. Radian approvals typically contain the following conditions:

• Purchase price equal to or exceeding an approved amount• Net proceeds equal to or exceeding an approved amount• Settlement to be held on or before a certain date• Borrower (seller) not to receive financial compensation from the sale• Borrower (seller) cash contribution and/or unsecured note requirement (if applicable)

To consider a short sale, Radian generally requires the aforementioned streamlined information along with a Radian-obtained credit report. In some cases, Radian may require additional information to make a decision.

Post

-For

eclo

sure

Sa

le: P

rimar

y

Under the Master Policy, the insured/servicer shall actively cooperate with Radian to mitigate loss. These mitigation activities include diligent efforts to market and sell the property, and to submit to Radian any offer for sale of the property considered acceptable that can result in a lower claim settlement. These offers shall be approved or rejected by Radian in its entirety.

If the Insured fails to comply with the Master Policy in their requirement to prevent or mitigate loss, then Radian can adjust the insured’s loss by the reasonably estimated extent of the resulting harm to Radian. This may include factors such as excessive fees related to seller’s closing costs or buyer credits, unauthorized reduction to the purchase price, any transfer of the property for less than full value, as well as any required items of restoration. If the restored value indicates Radian was harmed in any way, the claim is subject to an adjustment for property damages.

Post

-For

eclo

sure

Sal

e:

Pool

Insu

red

Loan

s

In the event the REO strategy is unsuccessful, please submit list price reductions or changes to the REO strategy every 45 days to: [email protected].

If restoration issues are identified or if during the review of the appraisal/BPO, Radian finds any physical damage to the REO property, caused by accident or other means, the insured/servicer will be required to restore the property to its condition at the time the certificate was issued, reasonable wear and tear excepted. Failure to make required restorations will result in Radian adjusting the claim based on repair bids or estimate of repairs found in the either the appraisal or BPO, whichever is less. These repair costs are not claimable under the Master Policy.

The REO strategy is required to market the property in such a manner to sell it at or near market value. A Quit Claim Deed does not give rise to a claimable event under our Master Policy, and if for less than full value will require documentation for verification that the transaction is arm’s length. A transfer of the property by Quit Claim Deed without prior written approval by Radian will result in an adjustment to the claim based upon the existing market value.

Disclaimer: This listing is not intended to address all of the circumstances which may arise in the processing of a property Sale or transfer. Specific claim circumstances require unique mitigation efforts. Please refer to the Radian Master Policy or Servicing Guide, or contact a Radian representative with additional questions. Radian reserves all rights under each of its Policies and Servicing Guides.

www.radian.biz | 877.723.4261 ©2010 Radian Guaranty Inc. RAC419 08/10

SAMPLE

Default and Claims Servicing Guide | Exhibits / Default Servicing Information Card – For Property Sales

55

Exhibit E

Quick Reference Guide

Servicers are 100% delegated to use FastAdvance provided the following program requirements are met:

•  Funds must be used to facilitate a loan retention workout designed to reinstate the loan

•  Loan must have Radian primary coverage (pool and modified pool ineligible)

Want a Radian FastAdvance?

 Simply email a completed FastAdvance

Claim Form to [email protected].

 Questions? Call 800.523.1988, ext.

1555 or email [email protected].

•  Loan must be at least 3 payments past due (i.e. payment due 8/1/08; eligible for FastAdvance on 10/2/08)

•  12 payments or more must have been received

•  Request an advance up to 15% of coverage (UPB + past due interest x coverage %)

•  FastAdvance amount cannot exceed $15,000

•  Borrower repayment of FastAdvance not required

•  LTV must be 80% or greater (AVM, BPO or appraisal value used to determine LTV must be no more than 6 months prior to the date the FastAdvance form is submitted to Radian)

•  FastAdvance is subject to the investor’s policy on mortgage insurer pre-claim advances

•  Advance amount will be deducted from a future claim payment

•  One advance per certificate (loan)

Radian

Default and Claims Servicing Guide | Exhibits / FastAdvance Servicer Quick Reference Guide

56

Do’s and Don’ts

Do use FastAdvance for:

•  “Buy Down” funds placed in a suspense account, applied monthly to reduce the payment over a specific time frame (12, 24, or 36 months). Used in conjunction with a modification that reduces the P&I payment, buy down funds provide considerable assistance. Great for negative equity situations!

•  Situations where a modification that capitalizes past due amounts is not viable.

•  Situations where the borrower is in a position to remit a significant portion of the past due amounts (35% or more) but does not have the ability to afford a repayment arrangement.

•  Payment of past due P&I, escrow advances, foreclosure costs and default-related expenses.

Do not use FastAdvance for:

•  Paying all past due amounts when the borrower is not participating with a monetary contribution.

•  Situations where the borrower has not demonstrated the ability nor desire to maintain the existing or modified monthly payment.

•  Paying a borrower contribution that has already been negotiated.

•  Paying late charges or other default-related charges that are income to the servicer/lender.

•  Loans that are 120 days or more past due and the borrower has no funds to contribute (it is recommended that for these situations you set up a 3 month “trial plan” to validate the borrower’s ability to pay).

©2010 Radian Guaranty Inc. Radian FastAdvance is a registered trademark of Radian Guaranty Inc. RAC392 03/10

Quick Reference Guide Radian

Default and Claims Servicing Guide | Exhibits / FastAdvance Servicer Quick Reference Guide

57

Exhibit F

Mortgage fraud is commonly discussed and reported, but did you know that insurance fraud is also a serious crime?

What is it?Any person who knowingly and with intent to injure, defraud or deceive any insurance company by presenting a false or fraudulent claim for payment of a loss is guilty of insurance fraud and may be subject to penalty. As every state may differ, you are advised to consult the applicable regulatory agency for your specific state law.

Don’t put yourself at risk!As a mortgage insurance company, Radian is obligated to report any finding or misrepresentation to the appropriate state insurance department.

Submitted claim documentation is subject to the same level of regulation as any other insurance claim, and anomalies on submitted claims are subject to a full insurance claim review. Here are a few tips to keep you on track:

• Don’t compound the problem; only submit valid claims• Review complete claim paperwork before it is submitted and be on alert for any

inconsistency that may result in an improper claim filing• When in doubt, ask your manager or Radian representative for clarification around

claim documentation

What You Need to Know About Insurance Claim Fraud

www.radian.biz | 877.723.4261 ©2009 Radian Guaranty Inc.

Default and Claims Servicing Guide | Exhibits / What You Need To Know About Insurance Claim Fraud

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Exhibit G

Radian Loss Management Contact Information

Default ReportingDefault reports email: [email protected] Corner – AVP of Default Reporting/Document Mgmt: [email protected] 877.723.4261 x1180

Document Management TeamResponsible for managing the inflow/outflow and follow-up on all documents within Loss Management, while controlling

the imaging and indexing process and tracking of inventory for collateral management. Claims documents are submitted via email to: [email protected] Twining – Director of Document Mgmt: [email protected] 877.723.4261 x1792

ClaimsResponsible for reviewing, analyzing, and processing claims in accordance to our Master Policy.Via web (user ID/password required): Check status or download a copy of an EOB: mionline.radianmi.comVia email: General inquiries/status: [email protected] Aquila – AVP Claims Manager: [email protected] 800.523.1988 x1011

Loss Mitigation: Homeownership PreservationResponsible for overseeing all of Radian’s loan retention activities.Cindy Kasperitis – Supervisor, Loan Retention: [email protected] 800.523.1988 x1029

Loss Mitigation: LiquidationResponsible for overseeing all of Radian’s liquidation workout activities.Chris Malinowski – Director, Loss Mitigation, [email protected] 800.523.1988 x1175

Special Investigations Unit (SIU)Contact for questions on the status of claims investigations, or general fraud-related questions or concerns.Via email: General inquiries/status: [email protected] Barber – Manager, Investigations: [email protected] 800.523.1988 x1119

RemedyResponsible for reviewing and providing management approval for all Contract Underwriting remedies provided to

our Clients.Richard Sullivan – Vice President, Loss Management Claims and Remedy Administration, [email protected]

800.523.1988 x1622

REO AcquisitionsResponsible for reviewing all new primary claims for potential acquisition of the property.Bernie Smith – Vice President, REO Acquisition: [email protected] 800.523.1988 x1413John Becker – Senior REO Analyst: [email protected] 800.523.1988 x 1072

REO Sale ApprovalsResponsible for reviewing REO related activity on pending Primary and Pool Claims.Submit REO approval requests for Pool Insure Loans to: [email protected] Submit REO approval requests for Primary Insured Loans to: [email protected] Bernie Smith – Vice President, REO Acquisition: [email protected] 800.523.1988 x1413

Dispute ResolutionProvides timely, comprehensive, and objective review of disputed policy rescissions.Bill West – Director, Dispute Resolution: [email protected] 800.523.1988 x1145

Default Servicing StrategyResponsible for the oversight and management of Radian’s relationships for default-related servicing with key servicers,

focusing on loss mitigation efforts to reduce or avoid Radian’s claim exposure.Liz Johnson – Vice President, Default Servicing Strategy: [email protected] 949.547.6915Connie Childs – Vice President, Default Servicing Strategy: [email protected] 214.663.7834

Default and Claims Servicing Guide | Exhibits / Radian Loss Management Contact Information

59 Default and Claims Servicing Guide | Exhibits / Loss Management Department Manager List

Exhibit H

Loss Management Department Manager List Phone: Name Title 800 .523 .1988

Paul Fischer Executive Vice President, Loss Management ext. 1412

Camillo Melchiorre Senior Vice President, Loss Management ext. 1054

Joe Hogan Vice President, Finance and Risk Analytics ext. 1303

Richard Sullivan Vice President, Claims and Remedy Administration ext. 1622

Robert Miller Vice President, Special Investigations Unit (SIU) ext. 1870

Vincent Conca Vice President, Loss Mitigation & Recovery ext. 1267

Nicholas Figlo Vice President, Homeownership Preservation ext. 1633

Bernie Smith Vice President, REO Administration ext. 1413

8/10

Radian Guaranty Inc.

1601 Market StreetPhiladelphia, Pennsylvania19103-2337

800.523.1988215.231.1000

Default and Claims Servicing Guide

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