Disclosing PMI on CD

Answered by:

Question:

PMI Insurance, we are receiving contradictory views on how to complete the escrow block on the closing disclosure. What is your take on how the Closing Disclosure should be completed when the borrower is paying PMI and with no prepaid PMI?

Answer:

To clarify - private mortgage insurance is required, no amount is due at or before closing, no escrow is being established for future payments, and the premiums are due starting with the first monthly payment on the loan. In that case no amounts are shown in the prepaids section or in the escrow section of the LE or the CD

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