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#625400 - 10/16/06 04:29 PM PMI Removal Denial Letter
wtsjomh Offline
Member
Joined: Jun 2006
Posts: 69
Does anyone have a sample (or know where I can find one!) of the letter we should be using if a customer requests PMI removal and it's denied for any reason?

Thanks!!

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Lending Compliance
#625401 - 10/16/06 04:45 PM Re: PMI Removal Denial Letter
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
Borrower's request:

Borrower’s Name
Co-Borrower’s Name
Street Address
City, State, Zip

Date:

Loan Number:

Property Address: Street Address
City, State, Zip

Notice of Grounds for Not Canceling Private Mortgage Insurance

You have requested that the private mortgage insurance (PMI) for your mortgage loan be canceled. We have determined that the requirements for cancellation of PMI under federal law have not been met because:


______ your mortgage loan is not subject to PMI cancellation requirements.

______ the principal balance of your mortgage loan has not reached 80% of the original value of the property securing the loan. “Original Value” means the lesser of the contract sales price of the property or the appraised value of the property at the time the loan was closed.

______ you do not have a good payment history, i.e., one or more of your payments have been 60 or more days past due within two years or 30 or more days past due within one year of the cancellation date.

______ we have not received evidence that the value of the property has not declined below its original value.

______ the value of your property appears to have declined; a copy of the valuation report is enclosed.

______ we have not received satisfactory certification that there are no subordinate liens on the property.

If you have any questions please contact us at the address or telephone number listed below.

Denying for LTV:

Borrower’s Name
Co-Borrower’s Name
Street Address
City, State, Zip


Date:

Loan Number:

Property Address: Street Address
City, State, Zip

Notice of Grounds for Not Terminating PMI

Your mortgage loan requires private mortgage insurance (PMI). PMI protects lenders and others against financial loss when borrowers default. Charges for the insurance are added to your loan payments.

Because the date the principal balance of your loan was first scheduled to reach 78% of the original value of the property has been reached, federal law normally would require automatic termination of PMI on your loan. However, because you are not current on your payments, the PMI on your loan has not been terminated.

When you become current on your loan payments PMI will automatically terminate. Please note that PMI is not the same as property/casualty insurance – such as homeowner’s or flood insurance – which protect you against damage to your property. Termination of PMI will not affect any obligation you may have to maintain other types of insurance.

If you have any questions please contact us at the address or telephone number listed below.


Denying at Midpoint:

Borrower’s Name
Co-Borrower’s Name
Street Address
City, State, Zip


Date:

Loan Number:

Property Address: Street Address
City, State, Zip

Notice of Grounds for Not Terminating PMI

Your mortgage loan requires private mortgage insurance (PMI). PMI protects lenders and others against financial loss when borrowers default. Charges for the insurance are added to your loan payments.

Because the midpoint date of your loan’s amortization has been reached, federal law normally would require automatic termination of PMI on your loan. However, because you are not current on your payments, the PMI on your loan has not been terminated.

When you become current on your loan payments PMI will automatically terminate. Please note that PMI is not the same as property/casualty insurance – such as homeowner’s or flood insurance – which protect you against damage to your property. Termination of PMI will not affect any obligation you may have to maintain other types of insurance.

If you have any questions please contact us at the address or telephone number listed below
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#625402 - 10/16/06 05:04 PM Re: PMI Removal Denial Letter
wtsjomh Offline
Member
Joined: Jun 2006
Posts: 69
Thank you, Dan, as usual for your lightening fast replies!!! All of your knowledge and help is greatly appreciated!!! Have a great day!!

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#2173094 - 04/11/18 08:41 PM Re: PMI Removal Denial Letter Dan Persfull
STK Offline
New Poster
Joined: Sep 2014
Posts: 4
smile Thank you! Thank you!

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