Mortgage Loan Industry Experience Factor

TO: Interested Parties
DATE: December 5, 2007
SUBJECT: Mortgage Loan Industry Experience Factor for the December 31, 2007, Annual Statement
The Average Industry Experience Factor (AvIEF) to be used for the December 31, 2007, annual statement is 0.004 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 2007. The IEF is an average of the mortgage data received at the NAIC for eight (8) previous quarters as follows:  
4th Quarter 2005 0.007%
1st Quarter 2006 0.006%

2nd Quarter 2006 

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%
Average IEF 0.004%

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 with any questions concerning this factor.