|The Mortgage Coverage Notification, Billing, and Payment Implementation Guide describes the use of the ANSI ASC X12 Consolidated Service Invoice/Statement (811) Version/Release 004010 transaction set and the Payment Order/Remittance Advice (820) Version/Release 004010 transaction set for the following business usages:
- Send billing and coverage information from insurance companies to mortgage institutions or their servicing agents
- Send payment information on premium billing to insurance companies
The 811 includes information that indicates whether the policy premiums are held in escrow (impound) by the mortgage company on a property loan, or whether the policy premium is direct billed (non-impound) to the consumer.
The mortgage company uses the 820 to send payment information to the insurance company on premiums held in escrow. The 820 may be included as addenda records with an ACH (CTX) electronic payment transaction originated by the mortgage company to the insurance company's bank. Another option for the mortgage company is to send the remittance information to the insurance company and settle the funds as a separate transaction.
This implementation of the 811 and 820 conform to the business requirements set forth by the Mortgage Bankers Association (MBA).