Certain disclosures concerning the cancellation and termination of private mortgage insurance (“PMI”) premiums are required to be provided for a “residential mortgage transaction” under 12 USCA § 4903. The disclosures provided in our system are as follows:
- PMI Disclosure – Fixed Rate (Cx29)
- PMI Disclosure – ARM (Cx862)
- PMI Disclosure – Balloon (Cx4668)
- LPMI Disclosure (Cx13489)
- Borrower Paid Single Premium PMI Disclosure – Fixed Rate (Cx14292)
- Borrower Paid Single Premium PMI Disclosure – ARM (Cx14293)
- Borrower Paid Single Premium PMI Disclosure – Balloon (Cx14294)
A “residential mortgage transaction” is defined (in relevant part) as “a transaction . . . in which a mortgage, deed of trust, purchase money security interest arising under an installment sales contract, or equivalent consensual security interest is created or retained against a single-family dwelling that is the principal residence of the mortgagor to finance the acquisition, initial construction, or refinancing of that dwelling.” (Ibid.§ 4901[15])
For years, our generic PMI disclosures have been provided regardless of property type (including multiple-unit properties), due to client and investor requests. After further consideration, we have decided to restrict these documents to print only in the cases specified under the Homeowner’s Protection Act (“HPA”) – thus, these documents will only be provided by default for loans secured by a single-family dwelling.
To accommodate this, the following changes will be made:
First, we will be implementing a new, globally required field prompt for Field 22265 (“Property Type”) which will trigger when any of the following scenarios occur:
- Scenario # 1:
- Property Type = Not set
- Occupancy = Primary Residence
- Base Type = Conventional
- Monthly Mortgage Insurance = Yes
- Document Package Type = Closing
- Scenario # 2:
- Property Type = Not set
- Occupancy = Primary Residence
- Base Type = Conventional
- Single Premium Borrower Paid PMI = Yes
- Document Package Type = Closing
- Scenario # 3:
- Property Type = Not set
- Occupancy = Primary Residence
- Base Type = Conventional
- Lender Paid Mortgage Insurance = Yes
- Document Package Type = Either Initial Disclosure or Closing
Second, we will be changing the configurations on the documents listed above from printing when “Property Type = Allow Any” to:
- Property Type not set to 2 unit/duplex
- Property Type not set to 3+ unit
Clients who would still prefer to provide these disclosures for multi-unit properties will need to submit a request for customized print conditions to their Account Manager or Client Support. Customized print conditions already in place for clients will not be modified unless requested.
These changes will take effect on July 18, 2017. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
DR 233843