Claims FAQ
- What are the causes of Default?
- When should I notify PMI of a Default?
- How long do I have to foreclose and acquire title to a Property?
- How soon should I submit my Claim to PMI?
- What happens after I submit my Claim to PMI?
- What kinds of Claim settlement options does PMI have?
- What are claimable expenses?
- What are non-claimable expenses?
- What constitutes misrepresentation or fraud?
What are the causes of Default?
- Personal Loss, Divorce, illness, disability, inability to manage personal debt
- Economic Loss, Job loss, decline in earnings, property depreciation
- Catastrophic Loss, Local, regional, or national recession or depression
When should I notify PMI of a Default?
- You must notify PMI once the loan is four months in Default, when foreclosure or other appropriate proceedings have commenced, or 45 days after a 1st payment default.
- A paper form Notice of Default can be filed with PMI by faxed, mailed or sent by courier to our street address listed below. Notices of Default can be filed with PMI on computer tape and mailed or sent by courier to our street address listed below. We also accept the Notice of Default via pmiWEB-CONNECTSM. To use these channels, please contact your PMI Representative at 800.795.4764.
Claims Department
3003 Oak Road
Walnut Creek, CA 94597
Fax: 925.658.6943
How long do I have to foreclose and acquire title to a Property?
- The first filed legal action must be initiated by the time the loan is six months in default.
- To avoid interest curtailments, once foreclosure is initiated, you must diligently pursue the necessary steps to acquire possession of and title to the Property.
- PMI has established specific time frames in each state for you to acquire title and file your Claim.
To obtain more information on specific state time tables, please contact your PMI Representative at 800.795.4764, or consult our Delinquency and Claims Reference Manual.
How soon should I submit my Claim to PMI?The Claim should be filed within 60 days after title to the Property
is acquired or sold to a third party by foreclosure or prearranged
sale. Claims may be faxed to PMI, mailed or sent
by courier to our street address listed below. We also accept Claims
via pmiWEB-CONNECTSM. To use these channels, please contact
our Claims Department at 800.795.4764.
PMI Mortgage Insurance Co.
Claims Department
3003 Oak Road
Walnut Creek, CA 94597
Fax: 925.658.6943
What happens after I submit a Claim to PMI?
Your PMI representative will first verify that coverage is in force and that all documents necessary to perfect the Claim are received. PMI then selects among its settlement options.
What kinds of Claim settlement options does PMI have?
- Percentage Option
- An amount equal to the Claim Amount multiplied by the percentage of coverage specified on the Certificate, adjusted by any policy conditions or coverage options as specified on the Certificate.
- Prearranged Sale Option
- An amount equal to the lesser of the Percentage Option or the insured’s actual loss in connection with a prearranged sale of the Property. The insured’s actual loss is equal to the Claim amount plus all reasonable costs incurred in obtaining and closing the sale less the proceeds of the Prearranged Sale.
- Acquisition Option
- An amount equal to the Claim Amount less the amount of any payments of loss previously made by PMI with respect to the Loan, in exchange for the Good and Merchantable Title to and possession of the Property.
- Claim Withdrawal
- If the Fair Market Value of the Property exceeds your Claim Amount and the subsequent sale would result in a net gain to you, you can request that your Claim be withdrawn. PMI will close your Claim file without payment.
- Negotiated Settlement
- Under the terms of the Master Policy, coverage may be excluded or PMI may have the right to adjust the Insurance Benefit in certain circumstances. Under such circumstances, PMI may negotiate to settle a Claim at less than the Percentage Option.
- Closed Without Payment
- PMI may close your Claim file without payment after the Claim has been received for the following reasons:
Non-Perfected: All of the documents necessary to perfect your Claim have not been received after PMI has requested them in writing on 3 separate occasions and more than 60 days have elapsed since the Claim was filed.
Eviction: So that PMI can evaluate the Acquisition
Option potential, when the Property is occupied and an eviction
is in process, PMI may close your file without payment until you
can obtain access to the Property.
What are claimable expenses?
- Accumulated delinquent interest
- Preservation costs
- Property taxes
- Hazard Insurance Premiums
- Attorney’s fees
- Foreclosure/Court costs
- BPO (Broker's Price Opinion)/Appraisal costs
What are non-claimable expenses?
- Judgements or liens
- Late charges
- Homeowner Association penalties
- Tax penalties
What constitutes misrepresentation or fraud?
Fraud is defined as dishonest, criminal or knowingly wrongful acts of material misrepresentation. These include:
- Misrepresented employment
- Misrepresented down payment
- False verification of deposit or hidden 2nd
- Straw buyer
- Undisclosed debt
- Hidden bad credit/false social security number
- False lease/rental agreement
- Non-owner occupied investment property
