Mortgage lender refused to cancel MIP premiums though I meet requirements. How to get them to do it ?

Question

I have owned properety over 5 years and LTV is under 50%, so I requested cancellation of MIP but lender refuses to comply.Can they be compelled to comply, and how to go about it?

Answer 1

Lenders are required to cancel PMI under certain circumstance. You may not meet those circumstances. If you are a 'high risk mortgage' under Freddie Mac or Fannie Mae definitions, you may not be eligible for PMI cancellation.

You state that your LTV is under 50%. A lender is only required to cancel if your principal reduction over five years brings you to a point exceeding 22% of the ORIGINAL purchase price, and not today's values.

Answer 2

I recommend that you contact an attorney who specializes in real estate.

I suspect that a letter from yor attorney will get some action.