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#1837 - 05/17/01 05:18 PM release of pmi insurance
LarryC Offline
Junior Member
Joined: May 2001
Posts: 34
Seminole, Florida, USA
can anyone point me to the law / or commentary that speaks to the requirement to waive pmi, at ltv of 80% or less?
Is there any seasoning required with it or just ltv, as determined by new appraisal?

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General Discussion
#1838 - 05/17/01 07:43 PM Re: release of pmi insurance

Larry - some resources for you to review include: 12 USC 4901 (the law itself, enacted as public law 105-216 on 7-29-98); the June 15, 2000 Federal Reserve update RU2000-22 (which I believe you can find through the FRB website); and - maybe most importantly - the Freddie Mac single-family seller/servicer guide (chapter 61).

I think the Freddie guide discusses seasoning in borrower-requested cancellation requests. This may not be an issue for you if your loans are retained. I don't recall seeing seasoning mentioned in the legislation.

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#1839 - 05/18/01 02:09 PM Re: release of pmi insurance
Sheila Steck Offline
New Poster
Joined: Oct 2000
Posts: 16
Winona, MN
Be careful with this one. There are the federal requirements, Freddie Mac has their own rules and so does Fannie Mae (no they are not exactly the same). Also, in Minnesota we have a state PMI law that is different as well. So, depending on if the loan is in-house or sold, and then depending on who it is sold to, makes a difference in which rules you follow. Also, whether the original loan was made before or after the 7/29/99 date affects the automatic termination feature.

I have a cheat sheet I put together for our Loan Servicing Department. It might help (no guarantees of course). If you'd like a copy, e-mail me at

This is a very touchy spot for consumers and you need to have all your ducks in a row before dropping or not dropping PMI.

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