PMI
What does PMI stand for and who does it protect?
Private Mortgage Insurance (PMI)
PMI protects the lender, not the borrower, in the case of default.
What is the timing and frequency of PMI premium billing?
NewRez pays PMI in arrears, and the frequency depends on the certificate
Monthly
Annual
Single
Which Government agency insures FHA loans and requires MIP?
Federal Housing Administration
When are USDA guarantee fees removed?
NEVER... USDA premiums are life of loan
What module are the PMI/MIP data points located in SD?
Tracking
What is the difference between PMI and MIP?
PMI = Private Mortgage Insurance that is required for conventional loans when the original LTV is greater than 80%
MIP = Mortgage Insurance Premium that is mandatory for FHA loans
What is the federal Act governing Mortgage Insurance?
***Bonus points if you know the year this act went into effect***
HPA - Homeowners Protection Act
07/29/1999
What is the payment frequency and deadlines for MIP payments?
***Bonus points if you can guess the size of the NewRez FHA portfolio***
FHA billing is paid monthly and is due on the 1st; however, we have until the 10th to pay without penalty
What is the payment frequency for USDA guarantee fees?
Collected monthly, paid annually
What task do you open for a borrower requested PMI cancellation?
NONE
Agent would open a PMI Cancellation work item
Customer Service -> Options -> PMI Cancellation -> New
What are the 3 different ways PMI can be removed?
1.) Borrower Requested - Original Value
2.) Borrower Requested - Current Value
3.) Automatic Termination
What are the 2 property and/or loan types that have different LTV thresholds for PMI removal?
Multi-Units and Investment Properties
What is the penalty for late MIP payments to HUD?
4%
What is the down payment required for a USDA loan?
0%
What type of evaluation/assessment of the property is most commonly used for PMI removal?
BPO - Brokers Price Opinion
What is the LTV threshold for LPMI (Lender Paid Mortgage Insurance) to be removed?
NONE...... LPMI cannot be removed. Life of loan premiums
Original LTV must be below 80%
Loan must be current
No 30 day late payments in the last 12 months
No 60 day late payments in the last 24 months
When is a loan eligible for MIP to be dropped from an FHA loan?
Original LTV is greater than 90% = Never, MIP is required for the life of the loan
Original LTV is 90% or less = When the original Loan-to-Value (LTV) ratio reaches 78% OR 11 years, whichever comes first
What are 2 different requirements to qualify for a USDA loan?
Rural and eligible suburban areas based on USDA eligibility map
Total household income must be below a certain threshold depending on the state/county
What is AIMIE?
Artificial Intelligence for Mortgage Insurance and Escrow
What are the LTV thresholds to remove PMI using the current value method?
FNMA and FHLMC:
75% or less, if the seasoning of the mortgage loan is between two and five years.
80% or less, if the seasoning of the mortgage loan is greater than five years.
80% or less, if the seasoning of the mortgage loan is less than two years, AND the property has had substantial improvements made since loan origination.
What are the PMI removal requirements for multi-units or investment properties?
***Bonus points if you know how long must the loan be seasoned to request removal for multi-units or investment properties?***
FNMA - 70% LTV
FHLMC - 65% LTV
HPA - Cannot be removed
What is the minimum down payment required for an FHA loan?
580 or higher credit score
500–579 credit score
Below 500 credit score
How would a borrower remove their guarantee annual fee?
Refinance to a conventional loan
Pay off the loan
How many teams are in the Mortgage Insurance Department?
4
MI Billing
Data Integrity
MI Cancellation
Gov't - FHA/USDA/VA