Pursuant to a periodic review, we will be updating the language of our generic PMI Disclosure forms to be more consistent with the language of 12 U.S.C. 4902 & 4903. Aside from a few minor grammatical changes, the most notable update is to the “Automatic Termination of PMI” provision, specifically the language for the ARM (Cx862) and Balloon (Cx4668) disclosures. Currently, the statement reads:
“If you are not current on your loan payments as of the termination date, PMI will automatically terminate when you thereafter become current on your payments.”
To maintain consistency with the Fixed PMI disclosure (Cx29), this language is being changed to:
“If you are not current on your loan payments as of the termination date, PMI will automatically terminate on the first day of the first month beginning after the date that you become current on your payments.”
The documents being modified are:
- PMI Disclosure – Fixed Rate (Cx29)
- PMI Disclosure – ARM (Cx862)
- PMI Disclosure – Balloon (Cx4668)
- Borrower Paid Single Premium PMI Disclosure – Fixed Rate (Cx14292)
- Borrower Paid Single Premium PMI Disclosure – ARM (Cx14293)
- Borrower Paid Single Premium PMI Disclosure – Balloon (Cx14294)
These document changes will be in effect on August 3, 2019. If you have any questions about these changes, please contact Clients Support at 1.800.497.3584.
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