Question has arose...
we have a customer who habitually pays after the due date of the 1st.
They reached their termination date of 7/1/2018 but were delinquent. Customer pays within the month but not necessarily by the 1st. Customer has habitually been late. Never by the 1st, sometimes within grace, sometimes later. 1-29 days 80 times, 30-59 days 38 times, 60-89 days 1 time. For 2018, it's been between 1-29 days.
The customer was current as of 7/31/18 but again became delinquent as of 8/1/18.
Our loan serving folks want to release the PMI, customer is at 78% LTV, due to the fact that they actually became current. CCO says no. Property value has declined and may be close to the current loan balance. In his mind the PMI provides extra assurance in case of default.
Do we have obligation to release because they were current at one given day? Current per our loan agreement/system tracking.
Thank you!