Re: Are You Sure? no! - Posted by TRandle
Posted by TRandle on March 18, 2001 at 11:50:23:
I doubt the regulations state that a lender must remove MI due solely to appreciation or LTV, with no other loopholes. Otherwise, all properties purchased cheaply that include MI would immediately qualify for having it removed. FMV is too subjective. I think the law states that when the principal balance reaches 80% of the original appraisal, then the lender is required to remove MI.
However, I also assume that there are provisions for getting it done quicker than that, i.e., appreciation, but I do not know the rules for that. That’s what I would like to know.
As far as the purchase, lenders don’t care about purchase LTV in regards to MI. I borrowed 90% of the purchase price (75% LTV) and was forced to get MI.
Yes, I should have been more specific - my two years is not quite up yet, although it appeared that way from my post.
With all that said, can anyone point me to the regs so that I can read them myself? Also, do the regs allow the lenders to have some discretion in how they apply the law? In other words, can the lender place certain criteria in their own documents that addresses how they will handle the issue? Thanks.