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X12 transaction guide · Finance

EDI 266 Mortgage or Property Record Change Notification

The X12 document mortgagees, lienholders and lessors use to inform insurers, investors and taxing authorities of mortgage or property record changes.

Sent by
Mortgagee, lienholder or lessor
Received by
Insurer, investor or taxing authority
Standard
ANSI ASC X12

What is an EDI 266?

The EDI 266 Mortgage or Property Record Change Notification is the ANSI X12 transaction set financial institutions such as mortgagees, lienholders and lessors use to inform interested parties, such as insurers, investors and taxing authorities, of mortgage or property record changes.

When loans are paid off, transferred to a new servicer or have their mailing details changed, insurers must update the mortgagee on hazard policies and tax authorities must send bills to the right party. Notifications keep these records aligned.

How the EDI 266 worksDiagram of the EDI 266 Mortgage or Property Record Change Notification. Mortgagee, lienholder or lessor sends it to insurer, investor or taxing authority. It usually starts the exchange. It is usually followed by 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 LX (Transaction Set Line Number) and the required 0220 loop with N9 (Extended Reference Information) and the required 0222 loop with API (Activity or Process Information). 2 optional loops are listed by their first segment.How the EDI 266 worksMortgage or Property Record Change Notification: who sends it, where it fits and what the standard marksrequired1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 266SENDERMortgagee, lienholderor lessorRECEIVERInsurer, investor ortaxing authority997 or 999 acknowledgment back, if the partners agreeUSUALLY FOLLOWED BY997FunctionalAcknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDsISA … IEAFunctional group, ID code MGGS … GETransaction set 266ST … SEHEADINGBGNBeginning SegmentRequired loop 0100 · repeats many timesN1Party IdentificationDETAILRequired loop 0200 · repeats many timesLXTransaction Set Line NumberRequired loop 0220 · repeats many timesN9Extended Reference InformationRequired loop 0222 · repeats many timesAPIActivity or Process Information+ 2 optional loops, starting with:N1NM1Blue 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 266. Your trading partner's implementation guide adds its own requirements.
How the EDI 266 worksDiagram of the EDI 266 Mortgage or Property Record Change Notification. Mortgagee, lienholder or lessor sends it to insurer, investor or taxing authority. It usually starts the exchange. It is usually followed by 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 LX (Transaction Set Line Number) and the required 0220 loop with N9 (Extended Reference Information) and the required 0222 loop with API (Activity or Process Information). 2 optional loops are listed by their first segment.How the EDI 266 worksMortgage or Property Record ChangeNotification: who sends it, where it fits andwhat the standard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 266SENDERMortgagee,lienholder orlessorRECEIVERInsurer,investor ortaxing authority997 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 MG (GS … GE)Transaction set 266 (ST … SE)HEADINGBGNBeginning SegmentRequired loop 0100 · repeatsmany timesN1Party IdentificationDETAILRequired loop 0200 · repeatsmany timesLXTransaction Set LineNumberRequired loop 0220 · repeatsmany timesN9Extended ReferenceInformationRequired loop 0222 ·repeats many timesAPIActivity or ProcessInformation+ 2 optional loops, starting with:N1NM1Blue 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 266. Your trading partner'simplementation guide adds its own requirements.

How to read this diagram: the top row shows who sends the 266, 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 266 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

  • Notifying insurers of a new loan servicer
  • Notifying payoffs so mortgagee clauses are removed
  • Updating billing addresses with taxing authorities

Where it fits in the document flow

This document 266 Mortgage or Property Record Change Notification
Usually followed by 997 Functional Acknowledgment

Structure

Mandatory segments in the 266 (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
  • N9
  • NM1
  • API
  • SE

Practical example

The 266 in practice

A servicing transfer moves 10,000 loans to a new servicer. The new servicer sends the borrowers' hazard insurers 266 notifications updating the mortgagee clause and loss payee address for each loan. Insurers update their policies so renewal notices and claim payments reach the new servicer.

Implementation

Implementation considerations for the 266

  • Notify all relevant parties for each change.
  • Identify policies and parcels precisely.
  • Send notifications promptly after transfers or payoffs.
  • Track confirmations from every recipient.

How ECOM helps

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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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