HOMEOWNER'S PROTECTION ACT OF 1998 Flashcards
A member may cancel PMI when his or her equity in the property reaches twenty percent, if the following conditions are satisfied:
The member submits a written request to the servicer; the member has a good payment history; if required by the holder of the mortgage, the member provides evidence that the property’s value has not declined below the original value and certifies there is no subordinate lien.
When can PMI automatically terminate?
When the equity reaches 22 percent (the termination date) if the loan is current or on the date after the termination date when the loan becomes current.
Can a member cancel lender-paid mortgage insurance?
No, only the credit union has the right to cancel lender-paid mortgage insurance.
Within thirty days after PMI has been cancelled or terminated, the credit union must mail a notice to the member. What must be included in that notice?
That PMI has terminated; the member no longer has PMI; and no further premiums are due.
Credit unions are required to send an annual disclosure to members as well as the initial disclosure and the notice of cancellation or termination. What items must be included in the annual disclosure notice?
A description of the member’s right to cancellation and termination of PMI and an address and phone the member can contact to determine if PMI has been cancelled.
