SEATTLE--(BUSINESS WIRE)--Attorney Advertising. Keller Rohrback L.L.P. is investigating private mortgage insurance providers, mortgage servicers, and lenders regarding failures to terminate Private Mortgage Insurance (“PMI”) or to timely return unearned insurance premiums to borrowers as required by the Homeowners Protection Act of 1998 (the “HPA” or the “Act”). According to attorney Amy Williams-Derry, the failures in the private mortgage insurance industry to timely cancel a borrower’s PMI when the insurance is no longer legally required “artificially jack up borrower’s monthly payment obligations and may be costing some families hundreds of dollars each month.”
Many lenders require PMI for borrowers whose equity in their home is less than 20 percent, and who therefore have a loan-to-value (“LTV”) ratio of greater than 80 percent. As recently reported by The New York Times, the 1998 HPA put in place a new requirement for mortgage lenders to terminate PMI after LTV ratios decline. The Act sets automatic PMI termination based on the original value of the loan and under the normal amortization schedule when a borrower will reach an LTV ratio of 78 percent. For borrowers in good standing who submit a written request, PMI may sometimes be canceled when the LTV ratio reaches 80 percent.
In addition to failing to timely terminate or cancel PMI, some servicers fail to appropriately return unearned PMI premiums to the borrower, as required by the HPA. Indeed, some servicers place unearned PMI premiums in a client’s escrow account, rather than returning it directly to the borrower within 45 days, as the HPA requires.
The Consumer Financial Protection Bureau (“CFPB”) recently issued a compliance bulletin providing information to servicers regarding their adherence to the HPA’s cancellation and termination provisions. Private mortgage insurance companies may also be liable under the Act.
According to National Mortgage News, as of June 2014 the seven private mortgage insurance companies are:
United Guaranty Residential Insurance Co.
Radian Guaranty, Inc.
Mortgage Guaranty Insurance Corp.
Genworth Financial, Inc. (NYSE:GNW)
Essent Guaranty, Inc.
Arch Mortgage Insurance
National Mortgage Insurance Corp.
If you have a residential mortgage that was implemented on or after July 29, 1999 and you believe that you have been improperly charged for PMI, or that unearned PMI premiums have not been promptly returned to you, please contact attorney Amy Williams-Derry via email or by calling 800.776.6044.
Keller Rohrback is one of America’s leading class action firms handling cases for over two decades with a commitment to helping consumers and investors recover losses due to breaches of fiduciary duty, excessive fees, and other violations of law. With offices in Seattle, Phoenix, New York, and Santa Barbara, Keller Rohrback serves as lead and co-lead counsel in class actions throughout the country. Our Complex Litigation Group is proud to offer its expertise to clients nationwide, and our trial lawyers have obtained judgments and settlements on behalf of clients in excess of seven billion dollars.
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