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X12 transaction guide · Healthcare and insurance

EDI 263 Residential Mortgage Insurance Application Response

The X12 document a mortgage insurer uses to communicate the receipt and decision on a mortgage insurance application.

Sent by
Mortgage insurer
Received by
Mortgage originator or lender
Standard
ANSI ASC X12

What is an EDI 263?

The EDI 263 Residential Mortgage Insurance Application Response is the ANSI X12 transaction set a mortgage insurance company uses to communicate the receipt and disposition of a Residential Mortgage Insurance Application (872).

Lenders need mortgage insurance on many low-down-payment loans before closing. The response confirms that the insurer received the application and whether it approved, declined or suspended it pending more information, so the lender can proceed with the loan. Decisions can include conditions that must be met before the commitment becomes final, such as documents to be supplied at closing.

How the EDI 263 worksDiagram of the EDI 263 Residential Mortgage Insurance Application Response. Mortgage insurer sends it to mortgage originator or lender. It usually follows 872. It is usually followed by 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BGN (Beginning Segment) and N1 (Party Identification) and detail: the required LX loop with LX (Transaction Set Line Number), N1 (Party Identification) and the required REF loop with REF (Reference Information), N1 (Party Identification) and MIR (Mortgage Insurance Response). 1 optional loops are listed by their first segment.How the EDI 263 worksResidential Mortgage Insurance Application Response: who sends it, where it fits and what the standard marksrequired1 WHERE IT FITSUSUALLY FOLLOWS872Residential MortgageInsurance ApplicationEDI 263SENDERMortgage insurerRECEIVERMortgage originator orlender997 or 999 acknowledgment back, if the partners agreeUSUALLY FOLLOWED BY997FunctionalAcknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDsISA … IEAFunctional group, ID code MEGS … GETransaction set 263ST … SEHEADINGBGNBeginning SegmentN1Party IdentificationDETAILRequired loop LX · repeats many timesLXTransaction Set Line NumberN1Party IdentificationRequired loop REF · repeats many timesREFReference InformationN1Party IdentificationMIRMortgage Insurance Response+ 1 optional loop, starting with:G63Blue 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 263. Your trading partner's implementation guide adds its own requirements.
How the EDI 263 worksDiagram of the EDI 263 Residential Mortgage Insurance Application Response. Mortgage insurer sends it to mortgage originator or lender. It usually follows 872. It is usually followed by 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BGN (Beginning Segment) and N1 (Party Identification) and detail: the required LX loop with LX (Transaction Set Line Number), N1 (Party Identification) and the required REF loop with REF (Reference Information), N1 (Party Identification) and MIR (Mortgage Insurance Response). 1 optional loops are listed by their first segment.How the EDI 263 worksResidential Mortgage Insurance ApplicationResponse: who sends it, where it fits and whatthe standard marks required1 WHERE IT FITSUSUALLY FOLLOWS872Residential Mortgage InsuranceApplicationEDI 263SENDERMortgageinsurerRECEIVERMortgageoriginator orlender997 or 999 acknowledgment back, if the partnersagreeUSUALLY FOLLOWED BY997Functional Acknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDs (ISA… IEA)Functional group, ID code ME (GS … GE)Transaction set 263 (ST … SE)HEADINGBGNBeginning SegmentN1Party IdentificationDETAILRequired loop LX · repeats manytimesLXTransaction Set LineNumberN1Party IdentificationRequired loop REF · repeatsmany timesREFReference InformationN1Party IdentificationMIRMortgage InsuranceResponse+ 1 optional loop, starting with:G63Blue 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 263. Your trading partner'simplementation guide adds its own requirements.

How to read this diagram: the top row shows who sends the 263, 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 263 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

  • Confirming receipt of an insurance application
  • Approving or declining coverage
  • Requesting more information

Where it fits in the document flow

Usually follows 872 Residential Mortgage Insurance Application
This document 263 Residential Mortgage Insurance Application Response
Usually followed by 997 Functional Acknowledgment

Structure

Mandatory segments in the 263 (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
  • LX
  • REF
  • MIR
  • G63
  • SE

Practical example

The 263 in practice

A lender submits an 872 for a buyer putting 10 percent down. The mortgage insurer reviews the loan and returns a 263 approving coverage with the certificate number and premium. The lender adds the insurance to the closing documents.

Implementation

Implementation considerations for the 263

  • Match responses to applications by reference.
  • Act on requests for more information quickly.
  • Record certificate numbers for servicing.
  • Check whether partners use other electronic interfaces.

How ECOM helps

Automate the 263 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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