09.25.18   •   Document Updates

Document Updates: California, Connecticut, and Washington PMI Disclosures (Cx999, Cx1029, and Cx18541)

Previously, we had announced changes to these documents as part of FHLMC’s new servicing requirements concerning the cancellation of private mortgage insurance (see https://compliance.docutech.com/2018/08/10/document-updates-california-connecticut-and-washington-pmi-disclosures-cx999-cx1029-and-cx18541/). The previously announced changes were for grammatical purposes and we are now changing these documents to align with FHLMC’s new requirements, which take effect October 1, 2018.

Major revisions to the documents include:

  • Removing references to a BPO in the “Evidence of Property Value” rows, “FHLMC Borrower-Initiated Cancellation of Mortgage Insurance Based on Original Value” table in both the single- and multi-family versions of the forms.
  • Removing the “Other Conditions” row, “FHLMC Borrower-Initiated Cancellation of Mortgage Insurance Based on Original Value” table in the single-family version of the forms. This same row in the multi-family versions will also be substantially re-written.
  • Removing the “Minimum Seasoning Requirement” row, “FHLMC Earliest Date for Borrower-Initiated Cancellation of Mortgage Insurance Based on Current Value” table in the single- and multi-family versions of the forms.
  • Substantially re-writing the “Earliest Date For Automatic Termination” row, “FHLMC Automatic Termination of Mortgage Insurance” table in the single-family version of the forms.
  • Substantially re-writing the “Earliest Date Borrower-Initiated Cancellation Requests”, “Evidence of Property Value”, and “Other Conditions” rows, “FHLMC Earliest Date for Borrower-Initiated Cancellation of Mortgage Insurance Based on Current Value” table in the single- and multi-family versions of the forms.

Note that these language changes are not triggered based on Application Date or Closing Date or any similar date field. The new language will be in effect for all packages generated on or after October 1st, 2018, per FHLMC Servicing Bulletin 2018-6. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.

DR 272436