Posted by JasonWDTX on March 18, 2001 at 12:07:54:
You might look at www.findlaw.com
They have regs for almost anything, state or federal. I don’t know how easy it would be to search for it if you don’t know set of regs to search. But you may find something fairly easy.
Jason
getting rid of PMI - Posted by chan
Posted by chan on March 15, 2001 at 16:11:47:
i bought a house to live in 5 years ago. it was a 95% loan, and has a pmi premium of $50/month. i lived there 2 years, then rented it. the loan is currently at about 90%ltv, and i would like to get rid of the pmi. homeside says they will drop it at 80% ltv. in going over my closing docs on the house, i find no disclosures of pmi. any loopholes on getting out of it?
thanks
chan
Re: getting rid of PMI - Posted by Surfdog
Posted by Surfdog on March 15, 2001 at 18:34:58:
NOT a problem; contact your bank for info on PMI removal. They will likely tell you to get an appraisal by a State Certified Appraiser. Should cost about $250-$300 for a full-blown URAR form. If you had refied in the last coupla years, the laws have been even further liberalized towards consumer’s benefit regarding this issue. I’m an appraiser, & we do PMI removal all the time.
Perhaps… - Posted by DC (IL)
Posted by DC (IL) on March 15, 2001 at 16:25:28:
But I doubt it. I’m kinda in the same boat. I checked and my bank will drop the PMI if I have my house reappraised and the LTV using the reappraised value is 80%. Ask your bnak if they’ll consider it.
Re: getting rid of PMI - Posted by Jack
Posted by Jack on March 16, 2001 at 05:54:03:
Surfdog. How about removing PMI from FHA loans. We have been told, its on there for the life of the loan and there is nothing we can do about it. Is that true??
Re: Perhaps… - Posted by Mark (SDCA)
Posted by Mark (SDCA) on March 15, 2001 at 17:55:05:
They almost assuredly will. In fact, I believe by Federal law, they MUST.
Mark
Are You Sure? - Posted by TRandle
Posted by TRandle on March 16, 2001 at 07:48:59:
Mark,
I don’t think that’s a true statement, or perhaps I received false information. I have a loan with Countrywide and was told the lenders also imposed a time limit. In other words, regardless of the fact that I bought at 75% and the house has appreciated 50k in the last two years, Countrywide doesn’t have to consider removing PMI until after a two year period.
I haven’t read the law so can you direct me to the specific language/provision that would dispute that statement? I thought the 80% automatic removal was based on the original loan and appraisal. Therefore, at the time, it made “sense” to me the lenders had found a loophole imposing a time period before I could force removal with a new appraisal. Thanks in advance.
Re: Are You Sure? no! - Posted by JasonWDTX
Posted by JasonWDTX on March 18, 2001 at 24:51:14:
I’m not sure on the time limit, I’ve never heard of it. But I do know that if your house appreciates after you buy it and you have 20% or more equity they have to remove the PMI.
If you bought at 75% LTV then they should not have placed PMI on your property in the first place. If it really appreciated 50K in the last two years then you should have LTV of less than 75% and also your 2 years should be up?
I would find out more and press the issue.
Jason
Re: Are You Sure? no! - Posted by TRandle
Posted by TRandle on March 18, 2001 at 11:50:23:
Jason,
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.