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Spotlight PEPPOL BIS Billing 3.0 The EU e-invoicing mandate is here — France Sept 2026, Belgium Jan 2026, Germany 2025.

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X12 260 — Application for Mortgage Insurance Benefits

The 260 requests payment of MI benefits following a defaulted loan — claim filed, foreclosure status, REO loss — from a servicer or lender to the mortgage insurer.

Purpose

The 260 documents an MI claim: loan in default, foreclosure completed or in progress, REO sale completed, loss calculation. It triggers payment of the coverage % of the loss to the lender, per the issued MI policy.

It is the contract enforcement document of MI. Acknowledged by 997. Followed by 820 (Payment) from the carrier to the servicer after decision.

Envelope structure

The 260 travels within the three X12 envelope levels (ISA/IEA, GS/GE with functional group MI, and ST/SE). Didactic example in release 004010:

x12 example-260.x12 
ISA*00*          *00*          *ZZ*SERVICER      *ZZ*MICARRIER     *260515*1530*U*00401*000000260*0*P*>~
GS*MI*SERVICER*MICARRIER*20260515*1530*1*X*004010~
ST*260*0001~
BGN*00*MI-CLM-2026-7711*20260515~
N1*MO*MGIC INVESTMENT CO*24*EIN-MGIC~
N1*PR*ACME LOAN SERVICING*24*EIN-SERVICER~
REF*0F*LOAN-2024-7711~
REF*ZZ*REO-SALE-COMPLETED~
AMT*FA*295000.00~
AMT*ZZ*42000.00~
DTM*036*20260415~
SE*9*0001~
GE*1*1~
IEA*1*000000260~

Common segments

  • Header — ST, BGN.
  • MI carrier / Servicer — N1*MO, N1*PR.
  • Loan reference — REF*0F.
  • Foreclosure status — REF*ZZ.
  • Loss calculation — AMT*FA (unpaid principal), AMT*ZZ (calculated loss).
  • Date — DTM*036 (sale date).
  • Summary — SE.

Common pitfalls

  • Servicing standard adherence: MI coverage requires the servicer to have followed the servicing standard (Fannie/Freddie/HUD) — a 260 on a mis-serviced loan is denied.
  • Loss calculation formula: the formula varies by MI master policy — a 260 with the wrong formula is recalculated by the carrier and paid less.
  • Statute of limitations: a 260 must typically be filed within 60 days after the REO sale; beyond that, the claim is barred.

Documentation

The code 260 and the name Application for Mortgage Insurance Benefits are public and listed on x12.org/products/transaction-sets. The complete structure of loops, qualifiers and code lists is distributed by DISA via the proprietary Implementation Guides (TR3). ediverse.io covers only public concepts, the envelope and didactic examples.