This course explains when the right to cancel PMI is permitted, the exceptions, disclosures, and notice requirement for borrower rights to cancel and terminate PMI, the basic disclosure requirements for lender-paid mortgage insurance, and the liability to borrowers if PMI is not canceled in accordance with the law.
After completing this course, students will be able to:
• Describe when PMI is required and when it must be cancelled
• Explain borrower and servicer initiated requests for PMI cancellation and exceptions
• Describe lender disclosure and notice requirements for borrower rights to cancel and terminate PMI
• Explain the difference between Borrower paid mortgage insurance (BPMI) and Lender paid mortgage insurance (LPMI)