Annual notification to borrowers on their annual itemized statement that the borrower has the right to cancel PMI and the procedures Miss Clark announced the formation of the fund last week, saying it would open for applications in October while resisting any hard or fast rules that might hinder the industry ability to react to a rapidly changing marketplace.
Give a notification at loan origination that the loan includes PMI and how it may be canceled in the future. Requested that as any legislation is developed, Congress not add any unnecessary cost to lenders or servicers.
Is legislation necessary? I personally think not. The industry has and is reacting to a perceived problem. The shame is that they waited for governmental pressure to make any industry move. The greater shame is that this allowed a stage for some to posture themselves as the savior of the homeowners.
Anytime there is a governmental regulation, there is a cost involved in its implementation. Any cost is always passed on to the consumer. The process which is required to finish the Property valuation structure has quite little problems like it has legal involvement and because of that it becomes an easy process to conduct that process.
If Congress were really interested in saving the homebuyer money, they would have revamped the Federal Housing Administrations "mortgage insurance protection (MIP)" charge that by governmental law stays on the loan for the life of the loan.
Or if they purchased the same $100,000 property with the popular 3% down FHA loan, they would pay MIP until the day the loan was paid off. This issue has not been addressed and probably will not because it is easier to pressure private industry than change a governmental program.
To keep everything in focus, Americans enjoy and have prospered from an amazingly efficient mortgage system that is unknown in other countries. It is standard in Europe for a required 50% down payment. The mortgage insurance industry has helped us attain a 66% homeownership rate by allowing families purchase their own property with very little investment.