501.01D

Insurance Carrier Rating

Requirements

You do not need to rate

  • State pools or funds, or
  • NFIPNFIPProgram of flood insurance coverage and floodplain management administered under the National Flood Insurance Act. policies.
All Other Insurance Carrier Ratings
You must ensure... The insurance carrier...
For a new policy
  • for A.M. Best Company, has a
    • general policyholder rating of A- or better, and
    • financial size category of VI or better; or
  • for Demotech, Inc., has a Financial Stability Rating of A or better. 
For an existing policy (at origination or afterward)
  • for A.M. Best Company,
    • has a general policyholder rating of B++ or better, and
    • complies with the rating requirements for new policies at renewal; or
  • for Demotech, Inc., complies with the rating requirements for new policies.

Guidance

A new policy is one that is

  • not already in force, and
  • most common for an acquisition. 

An existing policy is

  • most common for a refinance, or
  • when the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). is added to a policy that the BorrowerBorrowerPerson who is the obligor per the Note. already has in force.