After a recent audit of certain disclosure documents concerning the cancellation and termination of private mortgage insurance (“PMI”) premiums, which are required to be provided for a “residential mortgage transaction” under 12 USCA § 4903, the following changes were made:
- Page 1- In paragraph “PMI will only be canceled if all the following conditions are satisfied:”
- A new Item 3 stating “You are current on your loan payments” was added.
- Former Item 3 statement beginning “We receive…” was renumbered to become Item 4.
This change will impact the following Private Mortgage Insurance Disclosures:
- PMI Disclosure – Balloon (Cx4668)
- Borrower Paid Single Premium PMI Disclosure – ARM (Cx14293)
- Borrower Paid Single Premium PMI Disclosure – Balloon (Cx14294)
This change will be in effect on February 2, 2018. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.