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cancelling PMI was only on FHA loans before 2012 I believe. If you refinanced after 2012 you are are stuck with PMI for either 11 years or permanently depending on the LTV of the loan at the time. I just went thru this.
If it is a conventional mortgage and you missed payments or if it is a rental they can impose additional restrictions. There are some other rules if it is a loan before 1999.
You need to look and find the PMI disclosure form in your mortgage package. If you can't find it request it. The cancellation date should be in there.
If you are having trouble I would call the CFPB(consumer financial protection bureau).
Last edited by truckinusa; 05-03-2017 at 09:50 PM..
Have you had the loan for two years or less? Did you sign your note after July 29, 1999? If so, once a year, your servicer must sent you a notice regarding PMI and the requirements needed to meet cancellation. They likely have it on their website. The servicers are fined big bucks for failing to drop PMI when required, so I am willing to put my money on the lender has legit reasons. Some of those reasons are loans flagged high risk, loans with subordinate liens, or loans with a late payment history in the prior two years.
Go find the notice. Then ask them why they aren't releasing the PMI. But as you will see in the notice, it's not just 78% and you are done. Send a written request asking for the reasons they are not cancelling your PMI. Copy your local Congressional Representative. If there is no response, ask that Representative how to request Constituent Assistance. You can notify CFPB, but they are so far behind you need your Rep's assistance.
Last edited by SmartMoney; 05-04-2017 at 06:37 AM..
Have you had the loan for two years or less? Did you sign your note after July 29, 1999? If so, once a year, your servicer must sent you a notice regarding PMI and the requirements needed to meet cancellation. They likely have it on their website. The servicers are fined big bucks for failing to drop PMI when required, so I am willing to put my money on the lender has legit reasons. Some of those reasons are loans flagged high risk, loans with subordinate liens, or loans with a late payment history in the prior two years.
Go find the notice. Then ask them why they aren't releasing the PMI. But as you will see in the notice, it's not just 78% and you are done. Send a written request asking for the reasons they are not cancelling your PMI. Copy your local Congressional Representative. If there is no response, ask that Representative how to request Constituent Assistance. You can notify CFPB, but they are so far behind you need your Rep's assistance.
I got my loan last year. about 6 months ago I made a large extra payment that got me below 78%
I have never missed payments, but my loan does get sold constantly. Each time it has been sold no terms have changed. I'm in a flood zone, could that be it? I asked them about the notice and they said that requirement is only set on the original loan servicer and not required after the loan has been sold. I'm pretty sure i'm being screwed here. I found a sheet in my original closing paperwork that says if the loan is sold I am required to negotiate terms with the new servicer, but whenever I get a notice that it is sold, the letters have always said no terms have changed. I have copies of all these letters. I think I'll be calling a lawyer.
I got my loan last year. about 6 months ago I made a large extra payment that got me below 78%
I have never missed payments, but my loan does get sold constantly. Each time it has been sold no terms have changed. I'm in a flood zone, could that be it? I asked them about the notice and they said that requirement is only set on the original loan servicer and not required after the loan has been sold. I'm pretty sure i'm being screwed here. I found a sheet in my original closing paperwork that says if the loan is sold I am required to negotiate terms with the new servicer, but whenever I get a notice that it is sold, the letters have always said no terms have changed. I have copies of all these letters. I think I'll be calling a lawyer.
There may be a "has to run for a minimum of two years" clause.
I got my loan last year. about 6 months ago I made a large extra payment that got me below 78%
I have never missed payments, but my loan does get sold constantly. Each time it has been sold no terms have changed. I'm in a flood zone, could that be it? I asked them about the notice and they said that requirement is only set on the original loan servicer and not required after the loan has been sold. I'm pretty sure i'm being screwed here. I found a sheet in my original closing paperwork that says if the loan is sold I am required to negotiate terms with the new servicer, but whenever I get a notice that it is sold, the letters have always said no terms have changed. I have copies of all these letters. I think I'll be calling a lawyer.
Who is the current servicer? I am hoping you don't say Seterus. So you are at 78% of the original purchase price or value? Are you able to access a history? Do you have statements? The flood zone is not it. But I would do what I previously recommended - Constituent Services. Try to collect as much data as possible. Amoritzation schedule, cancelled check, current balance. File a complaint with CFPB and ask your Congressional Representatives for help expediting a government agency. I want to say the limit on civil penalties is $2000 per incident or $200,000 for a class action. But I could have read that wrong earlier today. It may be worth a call into a real estate attorney or a RESPA attorney.
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