Basics
True or False. PMI is insurance that protects the client and will pay off their mortgage after their passing.
False- Mortgage insurance protects lenders from losses if you default on your loan.
How many days is an appraisal good for, for a Rocket to Rocket refinance?
120 days
What is the difference between MIP and PMI?
MIP- A fee for Federal Housing Administration (FHA) loans, required for lenders to protect against borrower default, paid as an upfront fee and/or monthly payments.
PMI- a policy lenders require for conventional home loans when a buyer puts down less than 20% to protect the lender if the borrower defaults.
What is the Mortgage Insurance Team email?
MortgageInsuranceInquiries@rocketmortgage.com
Using the PMI tool, a client has a principal balance of $180,200. The original value at closing was $200,500. What amount is needed to pay the principal down to 80%?
$19,800.
Clients loan LTV is at 81%, 2 year payment history, and wants to remove PMI. Can we request an AVM?
No- we cannot request an AVM unless the LTV is 80% or below.
How much is the BPO cost for 1 unit Freddie loan?
150
What are the 2 documents clients sign during the process that details the MIP guidelines?
Important notice to homebuyers and Informed Consumer Choice Disclosure
What is the task we set for a client who is disputing their PMI BPO results, and what is the turn time for client to be contacted via email?
PMIRSH, 3-5 business days
Client was approved for PMI removal November 5th. Per the notes, cancellation was completed and the final PMI payment was sent out. The client calls to ask why there were 2 PMI payments sent out. What do you advise?
Advise the client that PMI is paid in arrears, the November PMI pays for the PMI for October, and the December PMI pays for the November. Both payments are paying out October and November PMI.
Client had a BPO done and PMI completely removed. They are concerned their taxes will increase with the new evaluation. Does the client have anything to worry about?
No- we do not share the evaluation results with the county.
True or False- Client can use a third party appraisal for PMI removal?
False
MIP can be removed on FHA loans after how many years if closed on or after June 3, 2013?
FHA case numbers assigned on or after June 3, 2013:
A client that lives in Pennsylvania calls in who has a Primary 2 Unit, Fannie loan, and wants to remove their PMI. How much would the appraisal cost be for this client?
$750
Why does a VA loan have PMI on the 1098 statement when the client doesn’t actually pay PMI?
It’s the VA Funding Fee, not PMI. This only pertains to VA loans.
Client qualifies for PMI removal and requests a BPO. What is the turn time for client to be contacted by the broker?
7-10 business days
How much is the BPO cost for 1 unit Fannie loan?
$190
When can we remove MIP for FHA case numbers assigned before June 3, 2013?
Home evaluation came back $1000 short from the needed value, does the client have an option to pay the difference?
Yes- the loan will be noted with the details of the evaluation and paydown options/dates to pay down by.
What page can we locate the acceptable substantial home improvement examples?
https://pathfinder.foc.zone/content/policy/68ec6b46-27b2-406d-ad34-3e50a1df7bee
Client had PMI removed with BPO- and now wants to remove escrow, can we use the BPO value for this request?
No- BPO is strictly used for PMI removal, and cannot be used for escrow removal. Escrow removal is based on the original loan LTV only.
A West Virginia client qualifies for PMI removal- we submit the request and process the payment for the appraisal. How much is the appraisal?
$0- We cannot charge the client for the appraisal per state law.
Can MIP monthly amounts decrease?
Yes- they can decrease as the principal balance decreases. EAs need to be ran for this to happen.
Client has substantial home improvements. What must be notated for the PMI team to review?
1. List of major home improvements that have been completed.
2. Estimated dates of completion for each improvement.
3. Estimated cost of each improvement.
Client stated they have substantial home improvements, such as adding solar panels. They are not paid in full yet. Can we use this improvement?
No- they must be paid in full with documented proof.