HAMP and PMI

MjTinAP

LoanSafe Member
May 29, 2018
1
0
1
Hey All,

Looking for info/guidance. I'll try and keep this short. Countrywide conventional mortgage in 2005 to BOA unsure of year, unable to get BOA to do HAMP Modification for close to a year. Loan transferred to DITECH and had modification within a few short months loan then transferred to Rushmore Loan servicing in Feb of 2019. My original loan documents show a drop dead of April of 2018 on the amortization schedule. According to Rushmore that date was recalculated to 2029 it works out to approx. $10k over that extra time.

I'm really unsure of when the PMI is supposed to terminate. I requested PMI termination thru Rushmore website and was denied I then submitted a complaint through CFPB ( consumer financial protection bureau ) again the request was denied. My argument is just based on internet research based on guidance postings by the CFPB and a lawsuit that was based on opinions from the court that the original loan's home values take precedent over the BPO used for the HAMP Mod. and PMI termination cannot be pushed back. Rushmores response stated that a HAMP mod

If anybody has any opinions or have had success terminating the PMI from a HAMP Modification I would sure appreciate some help/guidance and if I am wrong to think my PMI should be extended please tell me that also. Just for reference i pasted below a portion of the response from Rushmore.

Thanks for reading,
Mike


"Our records reflect that the loan was originated in June 2005 with an original principal of $141,500.00 and private mortgage insurance (“PMI”) requirement. Please note that the PMI automatically terminates on the date that the principal balance reaches 78% of the original value of the property. The original value is the lesser of the contract sales price or the appraised value at loan origination. Based on the initial amortization scheduled at origination, the principal balance was scheduled to reach 78% of the original value on April 1, 2018, for automatic PMI termination. Prior to the servicing transfer to Rushmore, a loan modification was completed effective March 1, 2012, with a new principal balance of $141,900.28. Please note that the loan modification changed some of the loan terms and the loan modification agreement takes precedent over the original loan documents. After the loan modification, the principal balance increased and the loan no longer reached 78% of the original value on April 1, 2018. Based on the modified loan terms, the loan is scheduled to reach 78% of the original value on August 1, 2029, for automatic PMI termination."
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
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San Diego, California
www.loansreduced.com
That honestly doesn't make much sense to me because the principal balance didn't increase dramatically from what I can tell. Do you think they could have made a typo and said August 1, 2019? PMI required to have for 5 years and it sounds like you already have already researched PMI elimination. I'm wondering if when you got the loan modification they're trying to say you can only eliminate it once you've had the loan for 5 years. Either way that seems like BS because a modification is just modifying the terms of your current loan, it's not a refinance. Speaking of, have you thought about doing a refi or is your rate incredibly low on the modification? Feel free to reach me here as well: [email protected]