PMI "aging requirements"

[hovit9]

Houston, Texas

I am attempting to have PMI removed from my loan. Our loan initially was $275k on a $300k house; the outstanding principal sits at $120k. The loan originated almost two years ago. My mortgage servicing company is claiming that PMI must be paid for five years from the date of the loan origination. Is this a legitimate requirement? How do I go about taking legal action if not?

Thanks in advance.

 

[OHRoadwarrior]

It appears you are getting hosed unless your loan was high risk or another exception. It could have been cancelled at about 80%.

http://www.federalreserve.gov/boarddocs/caletters/2004/0405/CA04-5Attach1.pdf

 

[LdiJ]

It appears you are getting hosed unless your loan was high risk or another exception. It could have been cancelled at about 80%.

http://www.federalreserve.gov/boarddocs/caletters/2004/0405/CA04-5Attach1.pdf

I agree...If your original loan was 275k and you are now at 120k two years later its absurd for them to still be attempting to collect PMI.

 

[hovit9]

Thanks for the responses. I posted this question elsewhere and people seem to think a minimum of two years of payment history on a conventional loan is required in order to have "good payment history" as defined in the Homeowners Protection Act:

"A borrower has a good payment history if the borrower: (1) has not made a payment that was 60 days or more past due within the first 12 months of the last 2 years prior to the later of the cancellation date, or the date that the borrower requests cancellation..."

This seems ambiguous. I haven't had any late payments in the past two years, but the loan hasn't existed for two years.

 

[bdancer]

Have you actually READ your mortgage documents to see what it says about PMI. There's usually a clause defining how long .. it's usually a minimum of two years. If you lender is insisting it's 5, maybe your contract does say 5.

 

[HUD-1]

Also, FHA loans have "MIP" that runs for a minimum of 5 years...