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Borrower Verbally Requests to Cancel their PMI

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Question: 
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?
Answer: 

The main point of the statutory requirement for the request to be in writing is that you would not be obligated to comply with a verbal request. But voluntarily complying with that verbal request would not, in my opinion, be a violation of the HPA or any regulatory guidance on that. If your policy and procedures stipulate that requests for PMI cancellation must be in writing, then you might have an exception to policy. If your practice is to honor verbal requests as well as written, I'd recommend you make sure your policies and procedures reflect that.

First published on 10/21/2018

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