03/09/2025
I have a processor who issued a Loan Estimate and missed the fact that the loan had a 90% LTV, and the Loan Officer did not catch it either. So, the Loan Estimate did not include PMI. Even if we redisclose it will not fix the TRID tolerance violation.
I have always been told that the first month we collect at closing to pay to the PMI vendor would have to be paid by the lender to "cure" the tolerance violation, and then we continue on as normal collecting PMI escrow from the borrower monthly and passsing it on to the PMI vendor.
Now someone tells me that when this happens the lender has to pay for the entire life of the PMI, because of the tolerance error. Can anyone tell me what they think and give me something to back up your thoughts?
08/27/2023
I would like to know when exactly does a financial institution need to send the annual PMI notice? I understand that it can be included in the annual escrow statement, but if sent separately, what annual date should be used?
09/05/2021
A PMI disclosure is not required for a second home. However, our secondary market guidelines state that a disclosure is to be given with a loan which has PMI. It doesn't state whether it is a first or second home. Our LOS will not produce a disclosure, stating that it is a second home. How would the customer know when they can cancel the PMI if they are not given a notice?
06/21/2020
Is a PMI Disclosure Required for 2nd Homes?
03/23/2020
If the bank charges PMI and doesn't have a PMI insurance company that it has to pay can the bank truly collect the PMI? For example, if the bank had loans that didn't sell on the secondary market, and the insurance gets cancelled, can the bank still collect for the PMI?
09/08/2019
Can a Home Equity Line of Credit be done for a borrower who has PMI insurance on their first mortgage?
10/21/2018
A borrower verbally requests to cancel their PMI. All guidance states that these requests must be submitted in writing. If there is no record of written request, would this be a violation or a noted exception to internal policy and procedures?
05/21/2017
95% LTV. Initial Loan Estimate was issued 2/27/17 with the monthly FHA MIP falling off the loan at year 12. This error was caught and a corrected LE was issued on 3/7/17 reflecting the monthly MIP continuing throughout the 30 year loan term. This was Loan Officer error and isn't a valid Change of Circumstance but how would you advise we proceed? How do we
solve this? (Do we owe the borrowers the difference - that would be 18 years at $90 per month = $19,440!)
08/14/2016
If an appraisal comes in low and causes the loan to have mortgage insurance, the borrowers challenge the appraisal and the results come back the same. The three day time frame for re-disclosing on a new LE to show the MI has passed and now the borrower wants to pay for MI upfront.
Is this a valid reason for a change of circumstance or is it now a cost to cure since the re-disclosures were not sent within three days of the appraisal received?
01/10/2016
If we didn't get enough coverage for PMI, can we change that amount after closing? The amount goes up and I would assume that we will need to send a revised HUD, PMI Amortization Schedule, etc.