Claims FAQ
PMI Default Servicing & Claims is committed to making an appropriate disposition on each Claim, while maintaining our goal of preserving homeownership. To make this process as expeditious as possible, we’ve answered your Top 10 questions to give you a quick reference before you file a Claim.
- What are the causes of Default?
- How do I file a Claim?
- How soon should I submit my Claim to PMI?
- What happens after I submit my Claim to PMI?
- What Documents are needed when submitting the Claim?
- What kinds of Claim settlement options does PMI have?
- What is a Non-Perfected Claim?
- What are claimable expenses?
- What are non-claimable expenses?
- When do I file the Notice of Delinquency?
- How do I file a Notice of Default?
- 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
Claims can be filed through one of several methods, including Fax, EDI transmission, or via the Internet through our secure e-PMI® channel on the PMI website. Both EDI and e-PMI allow for efficient filing of your claim directly into PMI’s claims-processing system.
How soon should I submit my Claim to PMI?
The Claim should be filed within 60 days of the earliest date of the following: acquiring Borrower’s Title to the property, third-party sales or the Pre-Arranged Sale.
What happens after I Submit a Claim to PMI?
Your PMI Representative will confirm and verify the coverage is in force and request all additional documents necessary to process the Claim within 20 days of receipt. Upon receipt of all required documents, PMI will review and perfect the claim and schedule the payment. Payment is scheduled within 60 days from the Claim received date plus the total number of days it took to receive the required documentation.
What Documents are needed when submitting the Claim?
- The five documents required for every claims submission are:
- Collection Notes
- Attorney Foreclosure Chronology
- Loss Mitigation Notes
- Payment History
- Current BPO or Appraisal.
- If additional documents are required, the Claims Representative will contact the Servicer for additional information.
What kinds of Claim settlement options does PMI have?
PMI can settle the claim through the following Options.
- 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. - Pre-Arranged Sale
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. - 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. - CWP Option (Closed without payment)
If the Fair Market Value of the Property exceeds your Claim Amount and the subsequent sale would result in a net gain to the insured, you can request that your Claim be withdrawn. PMI can also select this option for non-receipt of requested documents and close the Claim without payment.
What is a Non-Perfected Claim?
PMI has not received the document(s) required to satisfactorily settle the Claim for payment. Our Claims Representative will request the missing document(s) on two separate "DOC Request" notifications at a 30-day interval.
Examples of the most common claimable expenses include the following (but are not limited to):
- Accumulated delinquent interest
- Preservation costs
- Property taxes
- Hazard Insurance Premiums
- Attorney's fees
- Foreclosure/Court costs
- BPO (Broker's Price Opinion)/Appraisal costs
Please contact the PMI Claims Representative for any questions on allowable expenses at pmiclaims@pmigroup.com.
What are non-claimable expenses?
Examples of the most common non-claimable expenses include the following (but are not limited to):
- Judgements or liens
- Late charges
- Homeowner Association penalties
- Tax penalties
When do I file the Notice of Delinquency?
You must notify PMI once two payments have been missed (may be less than 60-days delinquent), or when foreclosure or other appropriate proceedings have commenced.
How do I file a Notice of Default?
A Notice of Delinquency may be filed through the e-PMI Servicing website or through Automated Delinquency Reporting (ADR). For information regarding how to sign up for e-PMI or ADR, please contact: pmidefault.reporting@pmigroup.com
PMI Mortgage Insurance Co.
Claims Department
3003 Oak Road
Walnut Creek, CA 94597
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
