Private Mortgage Insurance Cancellation Under the homeowners protection act, borrowers can expect cancellation of private mortgage insurance when the loan is paid off or under these two categories – automatic mi cancellation and member initiated cancellation. To cancel mi under the two categories, you must meet the below requirements.
Automatic MI Cancellation
Member Initiated Cancellation
• Loan reaches 78% loan to value based
• Loan reaches 80% loan to value
on original value
based on original value
• Member current on payments
• No property value decline
• Servicer can no longer require borrower to
• Member makes a written request for
pay MI premium
cancellation to servicer • Good payment history • Current on payments
HOME BUYER’S GUIDE
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