Compliance Alliance Question of the Week

Question:
When is the deadline to provide a PMI notice of cancellation/termination?
 
Answer:
Assuming this is subject to the Homeowners Protection Act, the bank has 30 days after the PMI relating to a residential mortgage transaction is canceled or terminated to send out a notice to the borrower, as set out here:
 
https://www.federalreserve.gov/boarddocs/supmanual/cch/hpa.pdf
"Notification upon Cancellation or Termination of PMI Relating to Residential Mortgage Transactions General Requirements Not later than thirty days after PMI relating to a residential mortgage transaction is canceled or terminated, the servicer must notify the borrower in writing that

• PMI has terminated and the borrower no longer has PMI and
• No further premiums, payments, or other fees are due or payable by the borrower in connection with PMI."