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Replies (12)
- Andrew Adams, "203K Specialist"
- Contributions:9349
I belive by law the LTV is 78% and is based off the original amortization schedule not the current value. I have not heard that had changed.
- Mike Politzer, "Mike Politzer"
- Contributions:630
How are you getting to the 80% level - principal paydown or appreciation or a combination? I've heard recently from several MI companies that their policy is 78% based on paying it down and 75% with a new appraised value, but there has to have been improvements made to the property in order to go that route, not just pure appreciation based on other properties.
- Andrew Adams, "203K Specialist"
- Contributions:9349
Mike,
Why would the MI company make the call?
Why would the MI company make the call?
- hcrossing
- Contributions:5
Is 75% stated somewhere in a "law"? How can the MI companies just start doing this without homeowners having any recourse? Have they been doing this for a while?
- Mike Politzer, "Mike Politzer"
- Contributions:630
Andrew, why wouldn't they?
- Home Lending Pros.
- Contributions:224
It will be the lender who needs to agree to the ltv/mi issue...pay for an appraisal if you are at 75% if not you will need to wait you are very close.
good luck
good luck
- Mike Harrison, "mikeharrison"
- Contributions:28
I have never heard of any temporary law that makes the MI 75% LTV (Should be 78%).
Ask them to show you in writing how to remove your MI I believe they are required by law to at least show you what their policies are.
Ask them to show you in writing how to remove your MI I believe they are required by law to at least show you what their policies are.
- JulieAnn Bricker, "Julie Ann Bricker"
- Contributions:1
MI Companies are not the responsible party when removing PMI. It is up to the borrower to requesst that the lender review. Most likely the lender will verify the value is still supported and more than likely a new appraisal will be ordered to determine the current LTV of 78% or less which in this current market could hinder the lender removing this insurance, as this is the lenders protection from any type of loss on the loan due to foreclosure.
- Robert Lowery, "Bob Lowery"
- Contributions:2097
Here is the law that covers the removal of PMI. There are two options:
1. You may request it once you have paid the principal balance down to 80% of the original market value.
2. Then lender must automatically remove once you pay the loan down to 78% of the original market value...
Homeowner's Protection ACT 1998
The customer needs to contact the servicer and the MI company has nothing to do with it.
1. You may request it once you have paid the principal balance down to 80% of the original market value.
2. Then lender must automatically remove once you pay the loan down to 78% of the original market value...
Homeowner's Protection ACT 1998
The customer needs to contact the servicer and the MI company has nothing to do with it.
- Robert Lowery, "Bob Lowery"
- Contributions:2097
On the first option, it states they can refuse removal if there is evidence that the value has declined below the original value, therefor you would have to wait for option 2, which is the automatic cancellation at 78% of the original market value.
- Andrew Adams, "203K Specialist"
- Contributions:9349
Thanks Bob...
Mike,
Why would an insurance company ever tell a lender we cancelled the insurance coverage because we didn''t feel you needed to carry the insurance any longer and we don't want to keep getting premiums on low risk loans....The MI Company will continue to collect the payments for as long as the lender is willing to send them. In this enviornment I would be shocked if any lender would remove MI unless they had too! My guess is the 75% rule is in order to remove MI before they are required by law and based on a current appraisal.
Mike,
Why would an insurance company ever tell a lender we cancelled the insurance coverage because we didn''t feel you needed to carry the insurance any longer and we don't want to keep getting premiums on low risk loans....The MI Company will continue to collect the payments for as long as the lender is willing to send them. In this enviornment I would be shocked if any lender would remove MI unless they had too! My guess is the 75% rule is in order to remove MI before they are required by law and based on a current appraisal.
- Robert Lowery, "Bob Lowery"
- Contributions:2097
"My guess is the 75% rule is in order to remove MI before they are required by law and based on a current appraisal"
That would be my guess, too.
That would be my guess, too.
PMI Question - Wells Fargo stating 75% LTV before PMI removal
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