HPA – What are the provisions related to the return of unearned PMI premiums?

Compliance > Homeowners Protection Act
Q:  What are the provisions related to the return of unearned PMI premiums?    
 
A:    The servicer must return all unearned PMI premiums to the borrower within 45 days after cancellation or termination of PMI coverage. Within 30 days after notification by the ser­vicer of cancellation or termination of PMI coverage, a mort­gage insurer must return to the servicer any amount of un­earned premiums it is holding to permit the servicer to return such premiums to the borrower (12 USC §4902(f)).
 
 
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
 

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