§4904 — Title 12 Banks and Banking | U.S. Code

Summary

The loan servicer must send the borrower a written notice within 30 days after private mortgage insurance (PMI) is cancelled or ends. The notice must say the PMI has ended and that the borrower does not owe any more premiums, payments, or fees for that PMI. If the servicer decides the loan does not qualify for PMI cancellation or termination, the servicer must give the borrower a written notice saying the reasons and include any appraisal results used. For a cancellation request, that notice must be sent within 30 days after either the request was received or after the borrower provided required evidence, whichever is later. For a scheduled termination, the notice must be sent within 30 days after the scheduled termination date.

Title 12, §4904

Banks and Banking — Source: USLM XML via OLRC

(a)Not later than 30 days after the date of cancellation or termination of a private mortgage insurance requirement in accordance with this chapter, the servicer shall notify the mortgagor in writing—

(1)that the private mortgage insurance has terminated and that the mortgagor no longer has private mortgage insurance; and

(2)that no further premiums, payments, or other fees shall be due or payable by the mortgagor in connection with the private mortgage insurance.

(b)(1)If a servicer determines that a mortgage did not meet the requirements for termination or cancellation of private mortgage insurance under subsection (a) or (b) of section 4902 of this title, the servicer shall provide written notice to the mortgagor of the grounds relied on to make the determination (including the results of any appraisal used to make the determination).

(2)Notice required by paragraph (1) shall be provided—

(A)with respect to cancellation of private mortgage insurance under section 4902(a) of this title, not later than 30 days after the later of—

(i)the date on which a request is received under section 4902(a)(1) of this title; or

(ii)the date on which the mortgagor satisfies any evidence and certification requirements under section 4902(a)(3) 11 See References in Text note below. of this title; and

(B)with respect to termination of private mortgage insurance under section 4902(b) of this title, not later than 30 days after the scheduled termination date.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 4902(a)(3) of this title, referred to in subsec. (b)(2)(A)(ii), was redesignated section 4902(a)(4) of this title by Pub. L. 106–569, title IV, § 404(1)(C), Dec. 27, 2000, 114 Stat. 2958.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective 1 year after July 29, 1998, see section 13 of Pub. L. 105–216, set out as a note under section 4901 of this title.

§4904 Notification upon cancellation or termination