A Mortgagee can determine if it has an acceptable default and claim rate (LI Compare Ratio) that is at or below 150 percent of the default and claim rate for the States where it has underwritten loans by accessing Neighborhood Watch (NW) at https://entp.hud.gov/sfnw/nw/.
The Mortgagee should select click Frequently Asked Questions under the Help/About module in NW. Under the Miscellaneous heading click How do I use NW to determine Lender Insurance (LI) eligibility?
Additional information is available in Handbook 4000.1 I.A.5.b at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
Information on the Lender Insurance program can be accessed using the Lender Insurance Program link in the Approvals & Renewals section at: https://www.hud.gov/program_offices/housing/sfh/lender