Cx14292, 14293, and 14294 are provided generically for loans in which borrower-paid, single premium private mortgage insurance (PMI) is present, pursuant to the provisions of the Homeowner’s Protection Act (codified as 12 USCA §§ 4901 through 4910; see our announcement from October 16, 2012 for further information).
For some refinance transactions, single-premium insurance policies issued under the loan being refinanced continue under the refinancing loan. Under such circumstances, premiums for such insurance are not charged again in connection with the refinance loan; however, the insurance policy is still subject to cancellation or termination under 12 USCA § 4902(a) through (c) and any unearned premiums must be refunded back to the borrower under Ibid.§ 4902(f) and, as such, disclosure of this must be provided pursuant to Ibid. § 4903.
We will be tweaking the language of our borrower-paid, single premium PMI disclosures to be more accommodating for these types of situations, by changing the third sentence in the second paragraph from: “Since you have paid for your PMI at closing you may be entitled [etc.]” to “Since you have paid for your PMI at or before closing you may be entitled [etc.]”
This change will take effect on April 16, 2013. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
April 9, 2013
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