Mortgage Loan Industry Experience Factor

TO:

Interested Parties

FROM:

NAIC

DATE:

May 29, 2008

SUBJECT:

Mortgage Loan Industry Experience Factor for the June 30, 2008 Quarterly Statement

The Average Industry Experience Factor (AvIEF) to be used for the June 30, 2008, quarterly statement is 0.003 percent.  The AvIEF is defined in the Asset Valuation Reserve section of the NAIC’s Quarterly and Annual Statement Instructions Life, Accident & Health for the year 2008. The IEF is an average of the mortgage data received at the NAIC for eight (8) previous quarters as follows:  

2nd Quarter 2006

0.005%

3rd Quarter 2006

0.004%

4th Quarter 2006

0.004%

1st Quarter 2007

0.003%

2nd Quarter 2007 

0.002%

3rd Quarter 2007

0.001%

4th Quarter 2007

0.001%

1st Quarter 2008

0.001%

 

Average IEF

0.003%

 

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.