Posted by roger on December 24, 2003 at 24:34:09:
my understanding of the law when they purchase your note they purchase all agreements that came with it , you should post this on legal board so a lawyer can answer this, GOOD LUCK
Bank won’t cancel PMI until 65% LTV - Posted by Liz
Posted by Liz on December 23, 2003 at 17:32:50:
I recently refinanced my rental property with a bank who immediately sold the loan to Chase Manhattan. I paid down the pricipal in order to cancel the PMI. Current LTV is 73%. After submitting a written request, it was declined stating that their policy is to allow cancellation at 65% LTV and to ask again at that time. The PMI disclosure statement that I signed with the original lender states that I can request cancelation after reaching 80% and that it will automatically be cancelled at 78%. The new lender, Chase Manhattan, tells me sorry, but this is their policy and they are under no obligation. They told me to submit my grievance in writing to the PMI department but there is no phone number for the department. We could send letters back and forth for months without getting anywhere. What should I do?
Do just as they say… Send request - Posted by JT-IN
Posted by JT-IN on December 25, 2003 at 22:46:37:
Liz:
Do just as they tell you to do, send the request to the PMI Dept., however indicate in that letter that Chase has told you that they have said that 65% is the LTV limit, when you have it in writing stating otherwise. Tell them you need clarification to the policy, and that you wish it be removed.
Also attach a photocopy of what they issued you at closing, regarding the policy to eliminate it at 78% LTV.
Under you signature block in the letter, CC: the letter to this list…
- Attorney General of your State; (You will have to research the name and address as I do not know which state your located)
2)Ms. Lucy Morris
Federal Trade Commission
Division of Financial Practices
600 Pennsylvania N.W.
Washington, DC 20580
-
U.S. Attorney General
U.S. Department of Justice
950 Pennsylvania Avenue, NW
Washington, DC 20530-0001 -
Office of the Comptroller of the Currency
Legal Department
250 E Street, SW
Washington, DC 20219
I’m not sure that they will eliminate the PMI, but I’ll bet that they provide you an answer that has some legality to it. they will not BS you with the list of eyes that will see the letter and attachment.
Good luck on it…
JT-IN
Re: Bank won’t cancel PMI until 65% LTV - Posted by wes
Posted by wes on December 24, 2003 at 10:26:28:
I think you will probably find you are out of luck.
Key words in your post were “Rental Property”.
I’m not an attorney, but if you read about this subject, you will find the rules are slightly different for FHA loans vs loans with Private Mortgage Insurance (PMI). Most important thing of either is the date at which you closed the loan.
Since you said you recently refinanced, closing date should not matter. Since you are trying to cancel PMI, I assume you do not have a FHA loan. Therefore you may be thinking of “The Homeowners Protection Act of 1998” which became effective in 1999. This act states “with certain exceptions” for home mortgages signed on or after July 29, 1999, your PMI must be terminated automatically when you reach 22% equity in your home, blah, blah…
However, one of those exceptions is if your loan is “high-risk”.
Believe you will find this law was written for Owner-Occupied and does not apply to Non-Owner-Occupied. Therefore the guidelines for canceling PMI are set by the investor.