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

• Loan reaches 78% loan to value based on original value • Member current on payments • Servicer can no longer require borrower to pay MI premium

Member Initiated Cancellation

• Loan reaches 80% loan to value based on original value • No property value decline • Member makes a written request for cancellation to servicer • Good payment history • Current on payments