Our Master Policy with Clarity of Coverage® not only offers you the opportunity to significantly shorten the time period for rescission relief, you also have greater flexibility to choose the rescission relief that best fits your workflow.
Rescission Relief in as Soon as 12 Months
Whether you are submitting loans on a delegated or non-delegated basis, you can be eligible for rescission relief in as little as 12 months from loan origination.
For delegated and non-delegated loans:
- Submit the Origination File and Closing File to us for review and approval.
- Borrowers must make the first 12 consecutive monthly payments on time from their own funds.
Rescission Relief in 36 Months
If providing extra documentation does not fit well into your work flow, we have rescission relief that works for you. For delegated and non-delegated loans:
- Our process is still the same. Non-delegated customers submit the Origination File to us for review and approval. Delegated customers are authorized to underwrite the loan and approve the MI.
- Borrowers must make the first 36 consecutive monthly payments on time from their own funds.
Enhanced Collateral Coverage for Non-Delegated Loans
We will automatically review appraisals on all non-delegated loans. If the valuation meets our criteria, and borrowers make the first 12 consecutive monthly payments on time from their own funds, the rescission period for valuation-related issues will be capped at 12 months. No closing file required!
Our Underwriting Commitment
- We will not rescind for appraisal issues, unless there is a valuation variance of 15% plus evidence of manipulation by the appraiser of the information supporting the value.
- We take responsibility for our own work — if we miss something in a non-delegated submission that we should have caught, or if we make an error in doing our QA on delegated submissions, we won’t challenge it later.
Our Master Policy at a Glance
|Enhanced Clarity of Coverage
(For Insureds that want Essent to determine eligibility for early rescission relief)
|Underwriting Mistakes||Date issued||Date issued||Date issued|
|Collateral Eligibility/Valuation||12 months||12 months||12 months|
|Underwriting Defects||36 months||12 months||12 months|
(For Insureds that prefer to maintain their current process)
|Underwriting Mistakes||Date certificate is issued||N/A|
|Collateral Eligibility/Valuation||12 months||36 months|
|Underwriting Defects||36 months||See below*|
*Date certificate is issued for loans where we do QA review and identify no material findings. 36 months for all other non-QA loans.
A Note About TRID (TILA-RESPA): References to the HUD-1 settlement statement in our Master Policy should be read to refer to the new Closing Disclosure (CD) form for loans closed after October 3, 2015.
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