PMI Removal (NY): I think I'm being told bad info!

[mwnitz]

I have rental houses in Albany, NY. Everyone I've spoken to, including my lawyer at the closing as well as this forum, has told me that PMI can get removed in NY state at 80% loan-to-value with my written request. Both Wells Fargo and GMAC have sent me letters telling me that I must reach 70% loan-to-value. Can anyone shed some light on what's going on here? Also, if I am correct with the 80%, can you send me a reference to state law that I can include in my reply letter to them?

I have both two family and one family rental homes.

Thank you!

-Mark

[You Are Guilty]

Originally Posted by mwnitz

I have rental houses in Albany, NY. Everyone I've spoken to, including my lawyer at the closing as well as this forum, has told me that PMI can get removed in NY state at 80% loan-to-value with my written request. Both Wells Fargo and GMAC have sent me letters telling me that I must reach 70% loan-to-value. Can anyone shed some light on what's going on here? Also, if I am correct with the 80%, can you send me a reference to state law that I can include in my reply letter to them?

I have both two family and one family rental homes.

Thank you!

-Mark

I think you're referring to Insurance Law s.6503(d):

A mortgagor shall not be required to pay, directly or indirectly, the cost of continuing mortgage guaranty insurance on a loan secured by a first lien on real estate when the unpaid principal amount of the real estate loan represents seventy-five percent or less of the real estate’s appraised value at the time the loan was made or such higher percentage of such appraised value as may be established from time to time by general regulation of the banking board...

(edited for brevity - you can see the whole thing online)

But read this case, there may be more to your situation than you think:
[url]http://www.nycourts.gov/comdiv/Law%20Report%20Files/July%201998/bauer.htm[/url]