PMI disclosure informs the borrower that the loan has a requirement for private mortgage insurance (PMI) and that the borrower has the right to request cancellation of PMI when the cancellation date has reached or that the PMI will automatically terminate upon the termination date.
PMI disclosure is provided for any residential mortgage transaction that requires private mortgage insurance. PMI disclosure is provided to the borrower at the time of loan closing.
The contents of the disclosure depend on whether the loan is a fixed rate mortgage (FRM) or an adjustable rate mortgage (ARM).
HPA, §4903(a)(1)(A), requires the following items to be included in the PMI Disclosure for a fixed rate mortgage.
HPA, §4903(a)(1)(B), requires the following items to be included in the PMI Disclosure for an adjustable rate mortgage.
An amortization schedule is not required for PMI disclosure for adjustable rate mortgage.
The disclosure must be provided at the time of loan consummated. For this purpose the disclosure is typically included as part of the closing documents.
PMI disclosure informs you of the PMI cancellation date and PMI termination date for your loan. With this information you will know when to reach out to the lender to request cancellation of the PMI. Cancellation date and termination date are explained below.
Updated: Feb 20, 2016