Is Mortgage Insurance premiums paid on a Settlement statement for 12 months (and the settlement statement is dated 11/25/13) considered PREPAID premiums and must be allocated over 84 months? Or is it all deductible in 2013?

in general I guess you cannot deduct the entire costs upfront or within the same tax year as settlement.However, the IRS provides an exception to this rule for a limited group of taxpayers. The IRS allows taxpayers to deduct their mortgage insurance premiums for home purchases after Dec 31, 2006. For settlements after Dec 31, 2009, the IRS limits most types of mortgage interest deductions and requires homeowners to deduct prepaid mortgage insurance over the course of their loans or within 84 months, whichever is shorter; the deductions are limited to taxpayers who itemize their deductions, instead of taking standard deductions