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#2268384 - 03/30/22 02:35 AM PMI increase after closing
jlroberts Offline
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jlroberts
Joined: Sep 2009
Posts: 1,601
Ohio
We recently had an audit by our PMI company. They found that one of our loans, that closed 6 months ago, had in incorrect DTI and the premium should have been higher. Based on this information we owe a significant premium to them. We knew the borrowers DTI was really tight so we pulled a credit report 10 days prior to closing. The borrower signed the credit inquiry disclosure at closing stating that none of the inquiries resulted in new debt. When the audit was done, they pulled a new report and found that one of the inquiries had actually resulted in a new auto loan (date opened was five days before our closing). Basically the borrower lied to us. Short of calling the loan due for mortgage fraud, what are our options? Management wants to increase the PMI premium based on discovery of this information.

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#2268386 - 03/30/22 12:35 PM Re: PMI increase after closing jlroberts
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
You cannot increase the PMI premium. You can call the loan and you must file a SAR. I would be doing both, unless they were willing to sign a modification allowing for the increase. Of course the SAR is not optional.
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