Cancellation of Private Mortgage Insurance (PMI)
Disclosures Required
For Loans Obtained on or after July 29, 1999
The PMI Act requires that your lender notify you of your cancellation and termination rights at loan closing, and that your mortgage loan servicer notify you of these rights annually and upon cancellation or termination of your PMI.
At loan closing, lenders are required to disclose:
- A written initial amortization schedule (fixed-rate loans only)
- Your right to request cancellation of PMI and the date on which this request may be made
- The requirement that PMI be automatically terminated and the date on which this will occur
- Any exemptions to your right of cancellation or automatic termination
Annually, your mortgage loan servicer must send you a written statement that discloses your PMI cancellation and termination rights, and an address and telephone number to contact the mortgage servicer to determine whether you may cancel your PMI.
When your PMI coverage is cancelled or terminated, you must be notified in writing by your mortgage loan servicer within 30 days that your PMI has been terminated, that you no longer have PMI coverage, and that no further PMI premiums, payments, or other fees are due.
For Loans Obtained before July 29, 1999
Annually, your mortgage loan servicer must send you a written statement that discloses that under certain circumstances PMI may be cancelled (such as with consent of the lender). It should also provide an address and telephone number to contact the mortgage loan servicer to determine whether you may cancel your PMI.
While the PMI Act's cancellation and automatic termination rules do not apply to loans made before July 29, 1999, lenders may choose to follow similar policies for these loans. Be sure to call your mortgage loan servicer for specific information related to your mortgage.
In addition, some states may have laws that apply to early termination or cancellation of PMI -- even if you signed your mortgage before July 29, 1999. Call your state consumer protection agency for more information about your state's rules.
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