How do I verify my default/claim rate for eligibility under the Lender Insurance (LI) program?

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  
 

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-02228