Docutech is updating a few generic private mortgage insurance (PMI) disclosures to correspond with a ConformX system enhancement that allows allows PMI to be charged during the construction phase. The Homeowner’s Protection Act (HPA) requires certain PMI disclosures in connection with a residential mortgage transaction—including construction loans. Although most lenders choose not to charge PMI during the construction phase, our generic PMI disclosure configurations are being modified to trigger the documents for all construction loans that have PMI being charged during the construction phase. In addition, the disclosures are also being updated for Construction-Only loans to ensure that the PMI termination date for both the borrower-initiated and automatic termination paragraphs reflects the Construction Loan Maturity Date (Field 538), since all monies are due and payable at the end of the construction period for a Construction-Only loan.
The generic PMI disclosures being modified are:
- PMI Disclosure – Fixed Rate (Cx29)
- Borrower Paid Single Premium PMI Disclosure – Fixed Rate (Cx14292)
- Borrower Paid Single Premium PMI Disclosure – ARM (Cx14293)
These changes will be in effect on July 13, 2018. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.