As previously announced, FHLMC has published revised private mortgage insurance (“PMI”) requirements which take effect on October 1, 2018. These requirements are summarized in the following documents:
- CA Mortgage Guaranty Insurance Cancellation Disclosure (Cx999)
- CT Private Mortgage Insurance Disclosure (Cx1029)
- WA Mortgage Insurance Cancellation Disclosure (Cx18541)
While editing these documents to conform with FHLMC’s new requirements, we have decided to make some grammatical modifications to the current language, as well as update citations. Some of these changes include:
- Changing citations from “Freddie Mac Single-Family Seller/Servicer Guide, vol. 2, ch. 61” to “Freddie Mac Single-Family Seller/Servicer Guide ch. 8203”;
- Changing column headings from “Freddie” to “FHLMC”, to be consistent (since the columns for Fannie Mae loans are headed as “FNMA”);
- Changing certain proper nouns (g., “Principal”, “Interest”, and “Escrow”) – which do not have a corresponding definition – to common nouns;
- Changing narratives in certain places which are not consistent; and
- Changing certain instances of acronyms, such as “LTV” and “BPO”, to full phrases, since these documents are provided to borrowers (who, in most cases, are not familiar with these acronyms).
These changes will take effect immediately. Other changes which are being made to this document for the October 1st effective date will be announced later, when they are ready for Production. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.