Borrower Requested Cancellation Based On Original Property Value

You may request in writing to cancel MI when either:

 

(i) the Principal Balance of the Mortgage Loan is scheduled to reach 80% of the original value of the Mortgage Property (regardless of the current unpaid Principal Balance) based on the initial amortization schedule; or

(ii) the unpaid Principal Balance reaches 80% of the original value of the Mortgage Property based on actual payments.

 

The loan must be current at the time MI cancellation is requested, meaning the payment for the month prior to the date of the cancellation request must have been paid.

The Borrower:

 

(a) must not have made any payments that were thirty (30) days or more past due in the prior twelve (12) months, or

(b) payments that were sixty (60) days or more past due within the first twelve (12) months of the last two (2) years prior to the date the Borrower requests cancellation.

 

There are no requirements for a loan’s seasoning before the Borrower may request cancellation; however, if the loan is seasoned less than two (2) years, the payment history criteria must be applied to the length of time since the loan’s origination.

 

For example, a loan that qualifies for Borrower requested cancellation that is seasoned six (6) months is eligible for cancellation so long as there have not been any payments that were thirty (30) days or is eligible for cancellation so long as there have not been any payments that were thirty (30) days or more past due. As another example, a loan that qualifies for Borrower requested cancellation that is seasoned fifteen (15) months is eligible for cancellation so long as there have not been any payments that were thirty (30) days or more past due within (12) months of the request or sixty (60) days or more past due in the thirteen to fifteen (13-15) months prior to the request.

 

CIFI is required to obtain evidence that the value of the Mortgaged Property has not declined below the original property value. The property valuation may only be used to determine whether the value of the Mortgaged Property has declined below the original value. CIFI may pass on the property valuation fee to the Borrower.

The Borrower must certify that their equity in the property is not subject to any subordinate lien.

 

CIFI will not require further MI premiums more than thirty (30) days after the date the Borrower request is received or the date on which Borrower satisfies the requirements for establishing current value and certification as to subordinate liens.

 

Borrower Requested Cancellation Based On Current Property Value

The Borrower may also request in writing to cancel MI based on the current appraised value of the Mortgaged Property if the Mortgage Loan is a one-unit Primary Residence or second home that is:

 

Seasoned less than two (2) years if the Borrower has made improvements to increase the value of the Mortgaged Property, the Appraisal specifies the improvements that were made and contains commentary on their effect on value, and the LTV is 75% or less, based on the current appraised value.

Seasoned between two (2) and five (5) years with an LTV ratio of seventy-five percent (75%) or less, based on the current appraised value.

• Seasoned five (5) years or more with an LTV ratio of eighty percent (80%) or less, based on the current appraised value.

 

The loan must be current at the time MI cancellation is requested, meaning the payment for the   month prior to the date of the cancellation request must have been paid. The Borrower must not have made any payments that were thirty (30) days or more past due in the prior twelve (12) months, or payments that were sixty (60) days or more past due within the first twelve (12) months of the

last two (2) years prior to the date the Borrower requests cancellation. If the loan is seasoned less   than two (2) years, the payment history criteria must be applied to the length of time since the loan’s origination.

The Borrower must certify that their equity in the property is not subject to any subordinate lien.

CIFI will obtain a new Appraisal with an interior and exterior inspection that meets CIFI’s Appraisal requirements and must receive the results directly from the appraiser. CIFI may pass on the Appraisal fee to the Borrower.

 

To fill out the Removal Request Form, Please click below:

 

 

 

MI Removal Request Form

Capital International Financial, Inc.

NMLS # 1036987