CFPB Issues PMI Cancellation and Termination Guidance Bulletin

Author: Xhevrije West in Daily Dose, Government, Headlines, News

August 4, 2015

ARTICLE LINK (CLICK HERE)

In an effort to bring mortgage servicers into compliance with the Homeowners Protection Act, the Consumer Financial Protection Bureau (CFPB) issued a bulletin on Tuesday providing guidance to servicers regarding the cancellation and termination of private mortgage insurance (PMI).

According to the CFPB, private mortgage insurance provides protection to the lender if the borrower stops making payments on the loan. Private mortgage insurance is usually required by lender if the borrower's down payment is less than 20 percent of the sales price or appraised value of the home and are added to the borrower's monthly mortgage payment.

Congress passed the Homeowners Protection Act of 1998 to provide borrowers with cancellation and termination rights with their private mortgage insurance policy, the CFPB says. The law requires automatic termination of private mortgage insurance once the mortgage balance is reaches 78 percent of the original value of the property, among other criteria.

Private mortgage insurance is a huge cost to consumers, but the Homeowners Protection Act provides specific cancellation and termination rights to protect consumers from unnecessary costs. The CFPB advises that if a servicer does not cancel a borrower’s private mortgage insurance in a timely manner, it can lead to the borrower paying significant amounts of money on unnecessary premiums.

“Consumers should not be billed for unnecessary private mortgage insurance,” said Richard Cordray, CFPB director. “We will continue to supervise mortgage servicers to ensure they are treating borrowers fairly, and today’s guidance should help servicers come into compliance with the Homeowners Protection Act.”

The CFPB noted that this bulletin does not advise of any new responsibilities or requirements, but summarizes existing requirements under the law.

In addition to reaching the 78 percent loan-to-value (LTV) threshold, the borrower must meet certain other requirements for borrower-requested private mortgage insurance cancellation:

• The borrower must have a good payment history.
• The borrower must be current on the loan.
• The borrower must satisfy any requirement of the holder of the mortgage for certification that the borrower’s equity in the property is not subject to a subordinate lien.
• The borrower must satisfy any requirement of the holder of the mortgage for evidence (of a type established in advance and made known to the borrower by the servicer) that the value of the property has not declined below the original value.

Click here to view the CFPB's Private Mortgage Insurance Advisory Bulletin. 

Click here to view the CFPB's Summer 2015 Supervisory Highlights. 

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Please contact us if you need help or resources as we are here and happy to help!

Respectfully,

Dana Shafman

Managing Member

END Consulting

(888) 234-7006 Ext 101

Dana@ConsultingEND.com

www.TheDailyComplaint.com

NATIONSTAR MORTGAGE

NATIONSTAR COMPLAINT:

Submitted:        October 2014

Reported By:     Frank in Elk Grove, California

Report Link:      CLICK HERE

My loan was transferred to Nationstar. After a few weeks after the transfer I called to ask how to make a payment and setup automatic payment. A message said to wait until I received until I received the welcome letter. I later called them and asked about the welcome letter and they said that it was sent. I was given the new loan number so I could log in which I did to setup auto pay.

I received the letter on 10/21/2014, the payment due date was 10/17/2014, the web site tried to charge me 9.95 since it was a late payment so I mailed in the payment. The next day I received a phone call from Nationstar collection department wanting to know where my payment was. I told the person that I was a new customer and they told me that the credit companies would not be notified about the late payment. I am waiting to see if they charge me a late fee. I don't believe it is right to do what they are doing and need to stop this practice.

END CONSULTING ADVICE:

We routinely look for posts to answer in hopes that it will not only bring optimism to those homeowners and borrowers in distress but also some basic information to assist in fighting the banks that are "too big to fail" but yet don't appreciate the bailout that we provided in their time of need.  The debt collectors like SPS, SLS, Green Tree, Ocwen and Nationstar are simply just piranhas but they can be beat at their own game too just like the big banks can be defeated.  You CAN win this fight!!!

It pains me that you have fallen victim to the illegal, unfair, deceptive and abusive acts and practices of Nationstar but I also commend you for seeking help; too often homeowners do not fight for their consumer and constitutional rights! 

With that said, you have overlooked a key aspect to your fight, which is putting your objections in writing in the form of a proper QWR and attaching proof of your consumer and Constitutional rights.  If Nationstar does not remove any late charges on other false charges then you take your fight to regulatory agencies outside of Ocwen that assist in fighting for your rights like the CFPB; it’s a shame that Nationstar engages in this type of abuse. 

We would be more than happy to educate you as to how to fight for your rights.  My firm routinely seeks out complaints online so that we can educate as to how to fight back on our weekday show called "The Daily Complaint" where we review a complaint and how to tackle it successfully. 

We reviewed your complaint on the show if you would like to listen, click here or visit The DailyComplaint.com

You can learn more by visiting the CFPB's website and becoming educating about the rights afforded you under the FDCPA, Dodd-Frank and RESPA via the CFPB – click here. 

In the event you have further questions, you can contact END Consulting and me directly as I would be more than happy to contact Nationstar on your behalf to determine the status of your payment!

END Consulting is a full service strategic debt and credit consulting firm started in 2006 with expertise is debt negotiations coupled with an exceptional track record of strategic consulting to include the real estate industry with a formidable business foundation.  We have successfully assisted hundreds of clients in the past year alone in achieving desired results with regards to their mortgage loan(s) to secure ethical, legal and affordable mortgage workout solutions.  The results that we negotiated for our clients were not on the table for most when we took on the client as it took regulatory muscle and aggressive communication to achieve the desired debt restructuring resolutions.

I would be happy to elaborate for anyone reading this as we always offer free consultation until we can determine if we can assist you to include contacting the bank and/or servicer for you for free to uncover the options that exist for you in this situation. You can reach me via email at Dana@ConsultingEND.com or via the web at www.ConsultingEND.com. I have had the pleasure of educating thousands of consumers on their rights and how to assert them to get what they want...my firm is exceptional at what we do!

Every new beginning comes from some other beginning's END

Respectfully,

Dana Shafman

Managing Member

END Consulting

(888) 234-7006 Ext 101

Dana@ConsultingEND.com

www.TheDailyComplaint.com

CLICK HERE FOR RADIO SHOW

OCWEN LOAN SERVICING LLC

OCWEN COMPLAINT:

Submitted:      October 2014

Reported By:   Sally in Spring, Texas

Report Link:    CLICK HERE

I have paid a monthly premium for mortgage insurance since the inception of my loan in 3/2012. On August 29th, 2014 Ocwen charged my account for double the mortgage insurance. I called them and spoke to Lisa to ask why. She told me that this is always paid a month in advance and should have been since the beginning of my loan but I was behind a month and this extra payment was being applied to July 2014 so I would be caught up. She also informed me that I am not the only person this has happened to. 

So, according to her, going all the way back to the beginning of my loan, I never paid the first month's PMI. I requested a statement showing all payments and allocations back to 3/26/2012 and received it. I traced the PMI payments back and what I was told is a LIE. They have stolen $93.91 from me/my escrow account.

My loan started with Ally which was then obtained by Ocwen. The login to my account and format of the account information remained the same until 9/2014 when Ocwen has transitioned those loans over to it's official website. I am curious as to whether this has happed to others who also started with Ally. Seems to me they took a nominal fee for transferring people's accounts in a way they could claim was legal.

END CONSULTING ADVICE:

We routinely look for posts to answer in hopes that it will not only bring optimism to those homeowners and borrowers in distress but also some basic information to assist in fighting the banks that are "too big to fail" but yet don't appreciate the bailout that we provided in their time of need.  The debt collectors like SPS, SLS, Green Tree, Ocwen and Nationstar are simply just piranhas but they can be beat at their own game too just like the big banks can be defeated.  You CAN win this fight!!!

It pains me that you have fallen victim to the illegal, unfair, deceptive and abusive acts and practices of Ocwen since you have all the evidence you need to prove that your RIGHTS were violated but I also commend you for seeking help; too often homeowners do not fight for their consumer and constitutional rights!  With that said, you have overlooked a key aspect to your fight, which is putting it in writing in the form of a proper QWR to regulatory agencies outside of Ocwen that assist in fighting for your rights like the CFPB; it’s a shame that Ocwen can’t just do the right thing instead of this rampant abuse. 

We would be more than happy to educate you as to how to fight for your rights.  My firm routinely seeks out complaints online so that we can educate as to how to fight back on our weekday show called "The Daily Complaint" where we review a complaint and how to tackle it successfully. 

We reviewed your complaint on the show if you would like to listen, click here or visit The DailyComplaint.com

Let me additionally point out that Ocwen has violated your Constitutional rights as well as your consumer rights when they placed false fees on your account for PMI past due payments and then lied about you missing prior payments, that is criminal, period.  You can learn more by visiting the CFPB's website and learning more about the rights afforded you under the FDCPA, Dodd-Frank and RESPA via the CFPB – click here. 

In the event you have further questions, you can contact END Consulting and me directly as I would be more than happy to contact Ocwen on your behalf to determine the status of your error resolution!

END Consulting is a full service strategic debt and credit consulting firm started in 2006 with expertise is debt negotiations coupled with an exceptional track record of strategic consulting to include the real estate industry with a formidable business foundation.  We have successfully assisted hundreds of clients in the past year alone in achieving desired results with regards to their mortgage loan(s) to secure ethical, legal and affordable mortgage workout solutions.  The results that we negotiated for our clients were not on the table for most when we took on the client as it took regulatory muscle and aggressive communication to achieve the desired debt restructuring resolutions.

I would be happy to elaborate for anyone reading this as we always offer free consultation until we can determine if we can assist you to include contacting the bank and/or servicer for you for free to uncover the options that exist for you in this situation. You can reach me via email at Dana@ConsultingEND.com or via the web at www.ConsultingEND.com. I have had the pleasure of educating thousands of consumers on their rights and how to assert them to get what they want...my firm is exceptional at what we do! 

Every new beginning comes from some other beginning's END

Respectfully,

Dana Shafman

Managing Member

END Consulting

(888) 234-7006 Ext 101

Dana@ConsultingEND.com

www.TheDailyComplaint.com