Overview

Sagen is proud to provide Approved Lenders with its Sagen Underwriting Policies andStandards. The aim of this document is to provide clarity and assist Lenders with the steps involved in obtaining mortgage default insurance.

These Sagen Underwriting Policies and Standards are not meant to serve as a replacement for the underwriting practices and procedures that Lenders should maintain for their own business. Lenders should have their own standard underwriting practices and procedures in line with industry best practices and their own risk tolerances. These Sagen Underwriting Policies and Standards represent the minimum standards required by Sagen in relation to mortgages that will be insured by Sagen.

Mortgage default insurance is granted based on the facts specific to each file. Adherence to the practices set out in these Sagen Underwriting Policies and Standards does not guarantee that insurance will be granted in respect of any particular file, does not serve to provide claims certainty, and does not validate that sufficient due diligence has been completed in relation to any particular file. A Lender’s standard underwriting procedures should ensure that applications meet its underwriting standards and Sagen’s Underwriting Standards, as set out in the document, Sagen Underwriting Policies and Standards do not serve to alter, amend, or waive any of the terms of Sagen’s master policy, endorsements or agreements with Lenders.

Sagen will update these Sagen Underwriting Policies and Standards from time to time to reflect the ongoing evolution of its underwriting practices. Sagen will inform Lenders of updates to these Sagen Underwriting Policies andStandards either directly or by providing updates on the Sagen website. It is hoped that these Sagen Underwriting Policies and Standards provide Lenders with a clear understanding of Sagen’s Underwriting Process.