Can't Remove PMI By Market Appreciation !

[Richard Carlsen]

Here's a little blurb from no-pmi.com:

How To Cancel Private Mortgage Insurance
You can cancel your Private Mortgage Insurance if:

Your loan balance has reached 80% of its original value, you have made timely payments, and you have no subordinate liens on your property (a second TD as an example).

Or

Your equity has built up thru appreciation backed by an approved appraisal.

If you purchased your home after July of 1999, federal law requires your lender to inform you when you loan balance reaches 78% of its original amount.

However if your loan was sold to Fannie MAE of r Freddie Mac, you have a much easier road to hoe. These federal secondary markets have much better cancellation rules than the Federal law.

As long as you have been timely with your payments and your home loan is over two years old, these two institutions have instructed their servicers to cancel the PMI when the loan to value drops below 80%. All you need to do is call the servicer and tell them you believe your loan to value ratio to be below 80%.

The servicer may give you names of approved local appraisers. Depending on how much you have overpaid you may be due a nice hefty rebate.

So what can you do?

Find out your equity position.

Call or write your loan service company and ask them for your exact loan balance.

Ask your loan servicer (not the PMI insurance company) for their PMI removal Policy.

Go to home gains PMI removal calculator. You will need PMI Payment/Month, your purchase price, your original down payment, current outstanding loan. This will give you your equity level and your qualification for PMI removal.

If you qualify, then you will need to prove this thru an accredited state appraiser. It will cost you around $400.

 

[Mike Garrett RAA]

Just as a side bar....almost always they will require the appraisal to be done on a URAR....no 2055s.

 

[jtrotta]

Ohh Mr.Johnson,

I think Frank A took his ball (s) and went home, you see I remember Frank A - from quite some time back and he's of the opinion that he is always correct and everyone else is wrong; you my friend have greater patience than I (or me) which ever you prefer, I cannot see providing free edumacation to those who are of the opinion that they are always right; when he brought up the point that he hoped I wasn't a commercial appraiser, cause I don't understand ROI - another *** ump tion on his part, as I see it commercial appraiser's deal a lot in "Forcasting" kinda similar to weathermen who have now aquired all kinds of "Dopler" equipment so they could be more accurate, the only problem is when they say it's gonna rain and it's bright & sunny all day - whooops. And if that happens at a ratio of 10% per month, they're not ever gonna be 100% accurate - so Franky, I would guess even the infalable Commercial Appraiser can't ever be 100% Correct / 100% of the time -

DCJ - yep your analogy is accurate with regards to the Lenders not informing the Borrower and it is against the law, but which homeowner has deep enogh pockets to go after the giants. Therefore, the expansion of non compliance will exist. Just a short while back (past year or two) I ran into a couple of casses where "fuzzy math" was part & part of the problem; by using creative math, the equity was being depleated according to their calculations, it was kind of goofy, but I have a good friend who is an underwriter explain to me how they were calculating the "numbers"; when she told me how they did it, I almost fell over - the lengths one will go to, to outright screw someone is increadible.
But then again if you think about it - when Banks began the "automated money machines" it would cost you $.75 per transaction; there now up to $1.25 within the system and outside the system $2 to $5 per use - my, oh my - hey FRANK A, if yer out there (and I know ya are :lol: ) what do you think the ROI is on an automated machine :?: :?:
That one was fer you Johnson - 8O :lol:

8)

 

[David C. Johnson]

<span style='color:darkblue'>jtrotta,

Here is the question that I have: What happens to the billions of dollars of unearned premiums collected each year from many thousands of homeowners who are currently unnecessarily paying for PMI (i.e., now "MI" instead of "PMI," of course, which is another little trick right there)? The question is this: Are these unearned premiums fully considered when calculating new PMI rate? If they are, the affect would be that of greatly lowering PMI rates offered for new PMI policies because the loss ratio to overall accumulated yearly revenues would be much lower as the total revenues would be much higher. I bet these extra funds are not fully considered, if considered at all, for assessing current rates, and If they are, there will be Enron-type "creative accounting" involved.

If there happens to a real estate columnist reading this post -- nationally syndicated yet or not -- who may have a bit more gumption and guts than the rest, you may have just gotten your call to service. Your welcome. And we thank you. Good luck.

dcj</span>

 

[jtrotta]

It's callled the "Generally Foolish Fund"; more than likely it's invested into stock held companies like Enron, which appears to have a Commercial Grade laundry; chek out yer local Real Esate folks after the party's over and see how many of em can float :lol: Hey if ya have access to excessive amounts of capital you can play anyway ya want.

Here's my Question to you; Lender makes a loan fer $100k, mtg. is $75k and folks pay on it fer 5 years and then go belly up; lender takes it back and writes it off as a "loss" against earnings fer that year; holds the property at an expense (will asume $5k ta hold em) till the next yearly cycle, then resells it fer a $110k (will go easy); I'm so bad at math I can't finger this one out - maybe Franky can tell me what the ROI is on this :?:
Kinda almost reminds of the sell offs that took place down in Texas back a few years and what the RTC did with those properties that were $5 Mil+ the giveaways during that period. Ahh, the good ole days :wink:

8)

 

[David C. Johnson]

<span style='color:darkblue'>jtrotta,

I liked that!

Hey, is there any truth to the rumor that basic "Generally Foolish Fund Accounting 101" and also the doctorate curricula "Contemporary Derivatives Management for Modern Corporate Spin-offs" will both be offered again this semester in the newly renamed Lay Skilling Building at Wharton?

:lol:

dcj</span>

 

[Elliott]

My take on the PMI appraisal is the PMI have the
homeonwer frequently get the appraisal (mistake #1),
then I do an appraisal, and then am told that I have
to account for the "change" in value....is it because
they finished the basement or appreciation (mistake #2).

I do market value appraisals. I don't do partial interests,
I don't do market contributions of finished basements.

The PMI companies could definetely do a better job in
communication, but there is a built-in conflict of interest
in the whole process, be it homeowner or PMI company.

elliott

 

[FrankA]

Jtrotta, I didn't take my ball and go home, I just moved on from the kindergarten playground to an adult one.

It's a free country, you can see the glass through twisted facts and believe it is half empty for the rest of you life, I prefer to see it through ratioanal fact and reason and therefore believe it is half full.

Good day

 

[Bobby Bucks]

Joe did they ever remove the PMI for this guy? I tried scrolling through the posts, but this thread digressed into about 5 cyber brawls!