HPA – How can loan modifications impact provisions related to PMI cancellation and termination for non-high risk residential mortgage transactions?

Compliance > Homeowners Protection Act
Q:  How can loan modifications impact provisions related to PMI cancellation and termination for non-high risk residential mortgage transactions? 
 
A:    If a borrower and mortgage holder agree to modify the terms and conditions of a loan pursuant to a residential mortgage transaction, the cancellation, termination or final termination dates shall be recalculated to reflect the modification (12 USC §4902(d)).
 
 
This Q&A was based on information contained in the FDIC’s Compliance Examination Manual for Homeowner’s Protection Act – September 2015, which may be found here:  https://www.fdic.gov/regulations/compliance/manual/5/v-5.1.pdf
 

Add Feedback