In response to Freddie Mac’s updated 2018-6 bulletin, Cenlar’s Mortgage Insurance Department has revised its process to align with Freddie Mac’s guidelines for borrowers requesting Private Mortgage Insurance (PMI) removal.
For all borrowers requesting PMI removal, where Freddie Mac is the investor, the Mortgage Insurance Department will handle the requests based on the following:
Original value requests:
For evidence of value, the Servicer is not required to order and obtain a current value.
Current value requests:
For requests to cancel mortgage insurance on the basis of substantial improvements to the Mortgage Premises, Freddie Mac provided a description and examples of what constitutes substantial improvements for mortgage insurance cancellation purposes, which can be viewed here: http://www.freddiemac.com/singlefamily/pdf/guide.pdf
For evidence of value requiring a Servicer to verify the current value, the Servicer may order and obtain a new Broker Price Opinion (BPO) through BPOdirect, unless applicable law requires that an appraisal be used or it is determined to be in the Borrower’s best interest (e.g., at the option of the Borrower).
For clients where we have identified an alternative process in our contract (for asset loans or others) or via a Letter of Direction, we will continue to follow the documented process. If you wish to amend the instructions at any time, please contact your Client Manager.