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#2255554 - 06/18/21 07:14 AM MI Termination
CMSIngenue Offline
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New York has rules about LTV calculation that require ltv be calculated based on appraised value. This effects MI Termination or whether MI is even necessary in the first place. Does anyone know whether ny ins law 6501 only applies to primary residences or does it apply to investment properties and second homes as well?

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#2255556 - 06/18/21 11:21 AM Re: MI Termination CMSIngenue
rlcarey Online
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#2255559 - 06/18/21 12:11 PM Re: MI Termination CMSIngenue
CMSIngenue Offline
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6501 never mentions occupancy. It does mention property type. 6501 (c)(1)(b). But the rules in our LOS focus on the difference between HOPA and 6501 as it relates to single unit primary residence. HOPA is applicable to single unit primary. I am to reconcile NYs MI law with investor requirements on MI for second homes and investment properties.

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#2255563 - 06/18/21 01:07 PM Re: MI Termination CMSIngenue
rlcarey Online
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I guess I do not see a conflict.

(c)(4).......provided the borrower is not obligated directly or indirectly to pay any premium for mortgage guaranty insurance authorized under this article, and the instrument would be ineligible for sale to the Federal National Mortgage Association, the Government National Mortgage Association, the Federal Home Loan Mortgage Corporation or any other secondary mortgage market instrumentality or facility as the banking board determines

I read that to day that it only applies to loans that are ineligible for sale into the secondary market.
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#2255576 - 06/18/21 02:21 PM Re: MI Termination CMSIngenue
CMSIngenue Offline
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My interpretation is that portion of it is intended to address FHA loans where MI is required when the LTV is less than 80%. please refer to the sentence that comes before it:

an amortized instrument of indebtedness, evidencing a loan which otherwise conforms to the requirements of paragraph one or three of this subsection, and which has been amortized to less than eighty percent of the fair market value of the real estate at the time said loan was made; provided the borrower is not obligated directly or indirectly to pay any premium for mortgage guaranty insurance authorized under this article, and the instrument would be ineligible for sale to the Federal National Mortgage Association, the Government National Mortgage Association, the Federal Home Loan Mortgage Corporation or any other secondary mortgage market instrumentality or facility as the superintendent of financial services determines, without such mortgage guaranty insurance
Last edited by CMSIngenue; 06/18/21 03:30 PM.
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#2255585 - 06/18/21 03:35 PM Re: MI Termination CMSIngenue
rlcarey Online
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rlcarey
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If you say so. You need NY Legal Counsel's opinion. There is no mention of special NY requirements in the FNMA Servicing Manual.
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#2255599 - 06/18/21 04:14 PM Re: MI Termination CMSIngenue
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#2255601 - 06/18/21 04:20 PM Re: MI Termination CMSIngenue
rlcarey Online
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rlcarey
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That is the selling guide. I thought you were asking about termination. Maybe I misread your question since you were talking about HOPA.
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