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#1770329 - 12/26/12 04:44 PM Mortgage Insurance Mid Point
Patricia Offline
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Joined: Mar 2011
Posts: 335
Kansas
We have a loan that has a 71% LTV however, the loan has not reached the midpoint of the amortization period. It appears the borrower has been making additional principal payments. My question is should we terminate based on the LTV or can we wait until the loan has reached the midpoint?

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#1770525 - 12/26/12 10:09 PM Re: Mortgage Insurance Mid Point Patricia
Patricia Offline
Gold Star
Joined: Mar 2011
Posts: 335
Kansas
bump

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#1770622 - 12/27/12 03:14 PM Re: Mortgage Insurance Mid Point Patricia
StevenD Offline
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StevenD
Joined: Nov 2000
Posts: 489
KY
Once the loan reaches 80% of the original LTV you have to terminate PMI if the borrower requests it and there are certain conditions met.

Automatic termination of PMI occurs at 78% LTV based on the amortization schedule.

The midpoint of the amortization schedule triggers the "final termination" requirement if the loan is not already at 78% LTV based on its amortization schedule at that time.

Reference chapters 4, 5, 6 of the ACB/MBAA "Implementation Guide to PMI"
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#1770668 - 12/27/12 04:14 PM Re: Mortgage Insurance Mid Point Patricia
Richard Insley Offline
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Richard Insley
Joined: Oct 2000
Posts: 10,179
Toano, VA
Here's a link to the source--the Homeowners Protection Act.
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