Earlier loans have no such automatic cancellation. There has always been an informal borrower-lender relationship with regards to PMI cancellation, provided you knew you had PMI and were aware that.
Cancelling private mortgage insurance | Readynest – (Note: info below provided by the federal trade commission) The Homeowners Protection Act of 1998 – which became effective in 1999 – establishes rules for automatic termination and borrower cancellation of private mortgage insurance (PMI) on home mortgages.
requirements for borrower-initiated and automatic termination of BPMI. You should consult with your own legal counsel to ensure compliance. Regarding borrower-requested cancellation: While . the Act requires that servicers must respond to written cancellation requests, Fannie Mae and Freddie Mac have also elected to allow verbal cancellation.
A triggering event occurs when a lender must terminate MI under applicable law. Declines in MI premiums are not considered a triggering event. The lender should use the date on which automatic cancellation occurs, even if the borrower may cancel the insurance earlier. Does the lender have an obligation to send a revised LE if the MI amount changes?
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Automatic PMI termination. Even if you don’t ask your lender to cancel PMI, your lender still must terminate PMI on the date when your principal balance is scheduled to reach 78 percent of the original value of your home. You also need to be current on your payments on the anticipated cancellation date.
WASHINGTON — Private mortgage insurance gets a bad rap. And you don’t have to lift a finger. Cancellation is supposed to be automatic. Still, the law should be considered nothing more than a.
or by the automatic termination provision, the servicer must terminate PMI coverage by the first day of the month immediately following the date that is the midpoint of the loan’s amortization period if, on that date, the borrower is current on the payments required by the terms of the
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Homeowners Protection Act Introduction The . Homeowners Protection Act of 1998 (the Act) was signed into law on July 29, 1998, and became effective on July 29, 1999. The Act was amended on December 27, 2000, to pro-vide technical corrections and clarification. The Act, also known as the "PMI Cancellation Act," addresses homeowners’