12 U.S.C. § 4904: Notification upon…

Summary

The company that handles your mortgage must send you a written notice within 30 days after your private mortgage insurance (PMI) is canceled or ends. The notice must say that the PMI is gone and that you do not owe any more premiums, payments, or fees for that PMI. If the servicer decides your loan does not qualify to stop PMI, it must give you a written explanation and any appraisal used. If you asked for cancellation, the notice must come within 30 days after the later of your request or when you give required proof. If PMI ends on a scheduled date, the notice must come within 30 days after that date.

Title 12, §4904

Banks and Banking, Source: USLM XML via OLRC

(a)In general

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)Notice of grounds

(1)In general

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)Timing

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) 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