(1) If any insurer pursuant to the terms of the special endorsement to a guaranty makes payment upon a defaulted loan to the holder thereof, he shall apply to the executive director for reimbursement out of the mortgage guaranty fund for the amount guaranteed by the special endorsement.
(2) Upon payment to an insurer pursuant to subsection (1) of this section, the mortgage guaranty fund shall be subrogated to the rights of the mortgagee for such amount paid.