+1 vote
PNC BANK is sticking to the original amortization schedule on a 30 year conventional loan concerning automatic PMI insurance removal. I was at 53% LTV when sold and should have stopped pmi at 78%. According to the homeowners act shouldn't the bank recalculated the pmi amortization due to the loan being modified through the mortgage accelerator?
asked Jan 26, 2018 in Conventional Loans by Bill

2 Answers

+1 vote
Hello Bill,

Unfortunately, the law as written states that the lender can adhere to the original amortization schedule REGARDLESS OF THE ACTUAL LOAN BALANCE. I personally think that is unfair to borrowers, it is not disclosed and the CFPB missed a real opportunity to fix this when its founders created it. I have approached some lawmakers about fixing this (would take a change to a single sentence in the law) but that was only yesterday so I am still working on it. Trust me, I and others here at TMR believe that this is vastly unfair and we believe that it should be changed,  I want to write about it, including actual experiences from borrowers. If you would be willing to be interviewed, please contact me at gina@fullbeaker.com and we can go from there. Thanks again for reaching out.
answered Jan 26, 2018 by GinaPogol (47,650 points)
0 votes
Lenders don't automatically remove PMI. You need to request it. You can pay down the LTV to 78% or have the lender order a home appraisal to confirm that you have sufficient equity for 78% LTV.
answered Feb 6, 2018 by GustanCho (106,540 points)

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