The percentage of insured loans in a given category that are expected to result in claims over a specified time period. For example, fixed rate mortgages would have a different conditional claim rate than those with an adjustable rate. Factors such as a poor credit score and a high loan-to-value ratio can increase the conditional claim rate for a given class of mortgages. Mortgage insurance providers use the conditional claim rate to evaluate risk and determine the amount of funds that should be reserved to cover potential claims.
Related information about conditional claim rate:
- What is conditional claim rate? definition and meaning
Definition of conditional claim rate: The percentage of insured loans in a ... Mortgage insurance providers use the conditional claim rate to evaluate risk and ...
- Appendix A – Conditional Claim and Prepayment Rate Models - HUD
We developed ten separate conditional claim rate models. A separate model ... The basic structure of the conditional claim rate model is set forth in Equation A.1.
- Appendix E – Cash Flow Model - HUD
Conditional Claim Rate and Conditional Prepayment Rate regression analyses. It should be noted that the cash flow analysis does not go beyond this level of ...
- Appendix A - HUD
Exhibit A-2. Results for Conditional Claim Rate Model Estimation. Variable. FRM 30. FRM 15. ARM. SR FRM 30. SR FRM 15. SR ARM ...
- Appendix : Cash Flow Analysis - HUD
amortized insurance-in-force, which includes only the current outstanding balance on surviving loans. • Conditional Claim Rate (ccr): the number of claim cases ...
- Appendix A: Econometric Analysis of Mortgages This appendix - HUD
conditional claim and prepayment probabilities. Exhibit A-2. Results for Conditional Claim Rate Model Estimation. Variable. FRM 30. FRM 15. ARM. SR FRM 30 ...
- Appraisals, Automated Valuation Models, and Mortgage Default
ratios are small in magnitude, indicating that the conditional claim rate results reflect higher claims, and not merely lower survival. To establish this, a simulation ...
- FY 1988 to FY 1998 Originations
is the Cox transformed conditional claim rate for 30-year FRMs in. LTV category x , of loan size category I, originated in fiscal year y, and observed in policy year t, ...