A PMI disclosure is not required for a second home. However, our secondary market guidelines state that a disclosure is to be given with a loan which has PMI. It doesn't state whether it is a first or second home. Our LOS will not produce a disclosure, stating that it is a second home. How would the customer know when they can cancel the PMI if they are not given a notice?
Is a PMI Disclosure Required for 2nd Homes?
If the bank charges PMI and doesn't have a PMI insurance company that it has to pay can the bank truly collect the PMI? For example, if the bank had loans that didn't sell on the secondary market, and the insurance gets cancelled, can the bank still collect for the PMI?
Can a Home Equity Line of Credit be done for a borrower who has PMI insurance on their first mortgage?
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?