Mortgage Insurance at Payoff
Servicing Director functions as follows regarding collection of Mortgage Insurance (MI) premiums at payoff: - If the MI due date is more than a month after the payoff date, it collects no MI premiums.
- If the MI premiums are paid annually, it collects no MI premiums.
- If the loan is VA, it collects no “MI” premiums.
- Otherwise, it collects premiums for two months more than the difference between the MI due date and the payoff date. Or, more simply, enough premiums to pay through one month after payoff.
Example:
Today is 10/25/17.
If a loan has a MI due date of 11/1/17 and the loan is going to pay off on 12/15/17, Servicing Director includes 3 months of MI premiums for 11/1/17, 12/1/17 and 1/1/18 in the payoff calculation. If that same loan was going to pay off 11/30/17, Servicing Director includes 2 months of MI premiums for 11/1 and 12/1 in the payoff calculation.
ArticleNumber:
000055207
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