A borrower verbally requests to cancel their PMI. All guidance states that these requests must be submitted in writing. If there is no record of written request, would this be a violation or a noted exception to internal policy and procedures?
95% LTV. Initial Loan Estimate was issued 2/27/17 with the monthly FHA MIP falling off the loan at year 12. This error was caught and a corrected LE was issued on 3/7/17 reflecting the monthly MIP continuing throughout the 30 year loan term. This was Loan Officer error and isn't a valid Change of Circumstance but how would you advise we proceed? How do we
solve this? (Do we owe the borrowers the difference - that would be 18 years at $90 per month = $19,440!)
If an appraisal comes in low and causes the loan to have mortgage insurance, the borrowers challenge the appraisal and the results come back the same. The three day time frame for re-disclosing on a new LE to show the MI has passed and now the borrower wants to pay for MI upfront.
Is this a valid reason for a change of circumstance or is it now a cost to cure since the re-disclosures were not sent within three days of the appraisal received?
If we didn't get enough coverage for PMI, can we change that amount after closing? The amount goes up and I would assume that we will need to send a revised HUD, PMI Amortization Schedule, etc.
If a customer does not have 20% down payment, do we need to obtain PMI and escrow?
Borrower applies for a refinance. Original application was based on a value that would be 80% LTV. Appraisal came back a little low. LO goes over options with borrower that would include PMI on the loan. Borrower thinks about it and calls back the next day and indicates they do not wish to proceed. Is this a denial or withdrawn by applicant?
If a presently delinquent, residential mortgage borrower is owed a refund for unearned PMI payments associated with the automatic cancellation provision, can the bank apply those proceeds towards the past due payments on the loan?
When calculating PMI in the APR, I know that the up front PMI app fee, premium and reserves are calculated into the apr. What I would like to know is that if the PMI payments over the life of the loan is calculated into the APR also?
Since the establishment of escrows for all HPMLs became mandatory, we are having an issue with consumers who pay their homeowners insurance on a monthly basis. They don't want to make duplicate payments to the insurance company as well as our bank to fund their escrows. Understandably, they view this as a hardship, and are unable to afford an annual payment to their insurance company in order to get their premium paid in full and then start to fund their escrow. Any ideas what we can do in these situations? I understand that we can't simply have them sign a waiver releasing us from paying their homeowners premium, but still paying their real estate property taxes from their escrow.
Are initial PMI disclosures required on non-owner occupied purchase transactions?