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X12 transaction guide · Healthcare and insurance

EDI 260 Application for Mortgage Insurance Benefits

The X12 document lenders use to file claims with government agencies and private mortgage insurers after default or foreclosure.

Sent by
Mortgage lender or servicer
Received by
Private mortgage insurer or government agency
Standard
ANSI ASC X12

What is an EDI 260?

The EDI 260 Application for Mortgage Insurance Benefits is the ANSI X12 transaction set mortgage lenders use to file claims with government agencies and private mortgage insurers when defaults or foreclosure activity allow collection of a benefit.

The claim details the loan, the default and foreclosure history, the unpaid balance, accrued interest and the expenses incurred. Insurers and agencies have strict filing deadlines and documentation rules, so complete and timely claims matter for recovery. Supplemental claims can follow for later expenses.

How the EDI 260 worksDiagram of the EDI 260 Application for Mortgage Insurance Benefits. Mortgage lender or servicer sends it to private mortgage insurer or government agency. It usually follows 264. It is usually followed by 259 and 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BGN (Beginning Segment) and the required 0100 loop with N1 (Party Identification) and detail: the required 0200 loop with CSI (Claim Status Information), NM1 (Individual or Organizational Name), REF (Reference Information), N3 (Party Location) and N4 (Geographic Location). 3 optional loops are listed by their first segment.How the EDI 260 worksApplication for Mortgage Insurance Benefits: who sends it, where it fits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWS264Mortgage Loan DefaultStatusEDI 260SENDERMortgage lender orservicerRECEIVERPrivate mortgageinsurer or governmentagency997 or 999 acknowledgment back, if the partners agreeUSUALLY FOLLOWED BY259Residential MortgageInsurance Explanation ofBenefits997FunctionalAcknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDsISA … IEAFunctional group, ID code MGGS … GETransaction set 260ST … SEHEADINGBGNBeginning SegmentRequired loop 0100 · repeats up to 7N1Party IdentificationDETAILRequired loop 0200 · repeats many timesCSIClaim Status InformationNM1Individual or Organizational NameREFReference InformationN3Party LocationN4Geographic Location+ 3 optional loops, starting with:DFIRECFISBlue box: required loop. Optional loops are listed by the segment that starts them; when a loop is used, that first segment is required. Optional segmentsoutside loops are not drawn.Structure: required segments and loops in the X12 008010 listing for the 260. Your trading partner's implementation guide adds its own requirements.
How the EDI 260 worksDiagram of the EDI 260 Application for Mortgage Insurance Benefits. Mortgage lender or servicer sends it to private mortgage insurer or government agency. It usually follows 264. It is usually followed by 259 and 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BGN (Beginning Segment) and the required 0100 loop with N1 (Party Identification) and detail: the required 0200 loop with CSI (Claim Status Information), NM1 (Individual or Organizational Name), REF (Reference Information), N3 (Party Location) and N4 (Geographic Location). 3 optional loops are listed by their first segment.How the EDI 260 worksApplication for Mortgage Insurance Benefits:who sends it, where it fits and what thestandard marks required1 WHERE IT FITSUSUALLY FOLLOWS264Mortgage Loan Default StatusEDI 260SENDERMortgage lenderor servicerRECEIVERPrivatemortgageinsurer orgovernmentagency997 or 999 acknowledgment back, if the partnersagreeUSUALLY FOLLOWED BY259Residential Mortgage InsuranceExplanation of Benefits997Functional Acknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDs (ISA… IEA)Functional group, ID code MG (GS … GE)Transaction set 260 (ST … SE)HEADINGBGNBeginning SegmentRequired loop 0100 · repeats upto 7N1Party IdentificationDETAILRequired loop 0200 · repeatsmany timesCSIClaim Status InformationNM1Individual orOrganizational NameREFReference InformationN3Party LocationN4Geographic Location+ 3 optional loops, starting with:DFIRECFISBlue box: required loop. Optional loops are listedby the segment that starts them; when a loop isused, that first segment is required. Optionalsegments outside loops are not drawn.Structure: required segments and loops in the X12008010 listing for the 260. Your trading partner'simplementation guide adds its own requirements.

How to read this diagram: the top row shows who sends the 260, to whom, and which documents usually come before and after it. The lower part shows what X12 release 008010 itself requires: the envelopes around the 260 and the segments and loops the standard marks as required, area by area. Optional loops are listed by the segment that starts them rather than drawn in full. This is the standard's minimum, not a trading partner's requirement: each partner's implementation guide usually makes some optional loops mandatory, restricts the codes and may use a different release.

Expand diagram Download SVG

When it is used

  • Filing claims after foreclosure
  • Filing claims after a short sale
  • Supplementing claims with additional expenses

Where it fits in the document flow

Usually follows 264 Mortgage Loan Default Status
This document 260 Application for Mortgage Insurance Benefits
Usually followed by 259 Residential Mortgage Insurance Explanation of Benefits997 Functional Acknowledgment

Structure

Mandatory segments in the 260 (X12 release 008010)

The segments X12 release 008010 marks as mandatory at their level, in order. Segments inside optional loops are needed only when the loop is used. This is the standard's requirement, not your trading partner's: each partner's implementation guide names the release it uses, adds the optional segments it requires and restricts the values. The requirement status comes from one published X12 reference listing and has not been checked against a second source.

  • ST
  • BGN
  • N1
  • CSI
  • NM1
  • REF
  • N3
  • N4
  • DFI
  • DTP
  • AMT
  • REC
  • FCL
  • FIS
  • SE

Practical example

The 260 in practice

After a foreclosure sale, a servicer prepares the mortgage insurance claim. It sends the insurer a 260 with the loan, the default date, the sale results, the unpaid principal, interest and expenses such as property preservation. The insurer reviews the claim and responds with a 259.

Implementation

Implementation considerations for the 260

  • File within the insurer's or agency's deadlines.
  • Support every claimed expense with documentation.
  • Follow each insurer's claim requirements.
  • Track each claim through to final payment.

How ECOM helps

Automate the 260 with ECOM

Industry

Financial Services

Secure file transfer and B2B integration for banks and financial institutions.

Solution

Financial Document Automation

Automate invoices, remittances, payment files and bank statements from capture to posting.

Solution

EDI Integration

Exchange X12 and EDIFACT documents with partners and integrate them directly with your ERP.

More general questions about EDI are answered in the EDI FAQ.

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