972-836-7750 Request a demo Talk to an expert
Talk to an expert Request a demo Call sales 972-836-7750

X12 transaction guide · Healthcare and insurance

EDI 872 Residential Mortgage Insurance Application

The X12 document a mortgage originator uses to request mortgage insurance and supply the information needed for a commitment.

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

What is an EDI 872?

The EDI 872 Residential Mortgage Insurance Application is the ANSI X12 transaction set a mortgage originator uses to request mortgage insurance and to provide the supporting information needed to obtain a mortgage insurance commitment on one or several residential mortgages.

The application carries the borrower's credit profile, income, the property, the loan terms and the coverage requested. The insurer underwrites the loan and replies with the 263. Electronic applications let lenders obtain coverage decisions quickly within their origination workflow. Applications may cover several loans.

How the EDI 872 worksDiagram of the EDI 872 Residential Mortgage Insurance Application. Mortgage originator or lender sends it to mortgage insurer. It usually starts the exchange. It is usually followed by 263 and 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 NM1 loop with NM1 (Individual or Organizational Name) and the required LRQ loop with LRQ (Mortgage Characteristics Requested) and LN1 (Loan Specific Data). 7 optional loops are listed by their first segment.How the EDI 872 worksResidential Mortgage Insurance Application: who sends it, where it fits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 872SENDERMortgage originator orlenderRECEIVERMortgage insurer997 or 999 acknowledgment back, if the partners agreeUSUALLY FOLLOWED BY263Residential MortgageInsurance ApplicationResponse997FunctionalAcknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDsISA … IEAFunctional group, ID code MEGS … GETransaction set 872ST … SEHEADINGBGNBeginning SegmentN1Party IdentificationDETAILRequired loop NM1 · repeats many timesNM1Individual or Organizational NameRequired loop LRQ · repeats many timesLRQMortgage Characteristics RequestedLN1Loan Specific Data+ 7 optional loops, starting with:CDISCMNX1IN1REAMCDPRJBlue 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 872. Your trading partner's implementation guide adds its own requirements.
How the EDI 872 worksDiagram of the EDI 872 Residential Mortgage Insurance Application. Mortgage originator or lender sends it to mortgage insurer. It usually starts the exchange. It is usually followed by 263 and 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 NM1 loop with NM1 (Individual or Organizational Name) and the required LRQ loop with LRQ (Mortgage Characteristics Requested) and LN1 (Loan Specific Data). 7 optional loops are listed by their first segment.How the EDI 872 worksResidential Mortgage Insurance Application:who sends it, where it fits and what thestandard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 872SENDERMortgageoriginator orlenderRECEIVERMortgageinsurer997 or 999 acknowledgment back, if the partnersagreeUSUALLY FOLLOWED BY263Residential Mortgage InsuranceApplication Response997Functional Acknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDs (ISA… IEA)Functional group, ID code ME (GS … GE)Transaction set 872 (ST … SE)HEADINGBGNBeginning SegmentN1Party IdentificationDETAILRequired loop NM1 · repeatsmany timesNM1Individual orOrganizational NameRequired loop LRQ · repeatsmany timesLRQMortgageCharacteristicsRequestedLN1Loan Specific Data+ 7 optional loops, starting with:CDISCMNX1IN1REAMCDPRJBlue 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 872. Your trading partner'simplementation guide adds its own requirements.

How to read this diagram: the top row shows who sends the 872, 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 872 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

  • Applying for mortgage insurance on a loan
  • Applying for coverage on several loans at once
  • Resubmitting applications with updated data

Where it fits in the document flow

This document 872 Residential Mortgage Insurance Application
Usually followed by 263 Residential Mortgage Insurance Application Response997 Functional Acknowledgment

Structure

Mandatory segments in the 872 (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
  • NM1
  • LRQ
  • LN1
  • CDI
  • LX
  • SCM
  • NX1
  • NX2
  • PAS
  • REF
  • IN1
  • IN2
  • REA
  • MCD
  • PRJ
  • SE

Practical example

The 872 in practice

A lender originates a loan with a 5 percent down payment. Its origination system sends the mortgage insurer an 872 with the borrower's credit and income data, the property value, the loan amount and the coverage percentage required. The insurer approves the application and returns a 263.

Implementation

Implementation considerations for the 872

  • Send complete data to avoid suspended applications.
  • Protect borrowers' personal and financial data.
  • Keep application data consistent with the loan file.
  • Track applications through to commitment.

How ECOM helps

Automate the 872 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.

Related transactions

Related healthcare and insurance documents

All 31 healthcare and insurance documents

Need help with the EDI 872?

ECOM maps, tests and monitors X12 documents for your trading partners and integrates them with your ERP.

Request a Demo Contact us