| TO: | Interested Parties |
| FROM: | NAIC |
| DATE: | September 4, 2003 |
| SUBJECT: | Mortgage Loan Industry Experience Factor for the September 30, 2003 Annual Statement |
The Average Industry Experience Factor (AvIEF) to be used for the September 30, 2003 annual statement is 0.020 percent. The AvIEF is defined in the IMR/AVR section of the NAIC’s Annual Statement Instructions Life/Accident/Health for the 2003 reporting year. The IEF is an average of the mortgage data received at the NAIC for eight (8) previous quarters as follows:
| 4th Quarter 2001 | 0.026% |
| 1st Quarter 2002 | 0.020% |
| 2nd Quarter 2002 | 0.018% |
| 3rd Quarter 2002 | 0.017% |
| 4th Quarter 2002 | 0.023% |
| 1st Quarter 2003 | 0.019% |
| 2nd Quarter 2003 | 0.018% |
| 3rd Quarter 2003 | 0.017% |
| Average IEF | 0.020% |
Individual companies should utilize information from the same quarters in calculating their average Company’s Experience Factor (AvCEF).
Contact Dan Swanson of the NAIC by phone at (816) 783 - 8412 or by e-mail at DSwanson@naic.org with any questions concerning this factor.
The industry experience factor is posted quarterly on the NAIC home page at the address of http://www.naic.org/svo/meacalc/index.htm. Or, go to the NAIC home page at http://www.naic.org and select "Divisions & Departments", "Securities Valuation Office (SVO)", "Filing Instructions and Forms" and then “Industry Experience Factor for Mortgages (IEF)”.