Introduction to Mortgage Servicing Examination Training eBook

Internal Use Only

Review

Notices provided annually  May be included in annual escrow statement or annual IRS interest payments disclosure Contents of annual disclosures  Rights of borrower to cancellation or termination of PMI  Address & phone number to contact servicer to determine whether borrower may cancel PMI

Internal Use Only

Review

Loan-to-Value (LTV)  Measure comparing amount of mortgage with appraised value of property Requests for cancellation or automatic cancellations  Borrower may request cancellation in writing when LTV reaches 80%  Automatic cancellation must occur when LTV reaches 78%  Final termination must occur the month after loan reaches midpoint of amortization schedule Return of unearned premiums  No later than 45 days after termination or cancellation