PMI Disclosures Required on Non-Owner Occupied?

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Question:

Are initial PMI disclosures required on non-owner occupied purchase transactions?

Answer:

Not unless it's required under state law. The Homeowners Protection Act (12 U.S.C. Section 4901) in item 15 defines "Residential Mortgage Transaction" as:

(15) Residential mortgage transaction.- The term "residential mortgage transaction" means a transaction consummated on or after the date that is 1 year after the date of enactment of this Act, in which a mortgage, deed of trust, purchase money security interest arising under an installment sales contract, or equivalent consensual security interest is created or retained against a single-family dwelling that is the principal residence of the mortgagor to finance the acquisition, initial construction, or refinancing of that dwelling. (emphasis added)

First published on BankersOnline.com 9/10/12