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Obtain PMI & Escrow if Missing Down Payment?

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Question: 
If a customer does not have 20% down payment, do we need to obtain PMI and escrow?
Answer: 

That is totally up to the bank. There is nothing that would prevent a bank from making a higher LTV loan. The loan would have to be reported to the Board as a supervisory LTV exception until that time it complied with the supervisory LTV guidelines.

First published on 09/29/2014

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