Blog

When & How to Cancel PMI

Tuesday, February 4th, 2020

Cancellation using original value The Homeowners Protection Act of 1998 (HPA) covers single-family primary residences whose sales were closed on or after July 29, 1999. HPA provides for borrower-requested cancellation and lender required cancellation. Borrower-requested cancellation under HPA Borrowers must provide a written request for MI cancellation to the lender, who cancels the MI policy: • The date the mortgage loan balance is first scheduled to reach 80% of the original property value, based solely on the initial amortization schedule , regardless of the outstanding balance of the loan OR • The date the mortgage loan balance actually reaches 80% […]