Congress enacted a law effective July 29, 1999, adding restrictions and disclosure requirements for lenders who require loans with Private Mortgage Insurance.

For clarification Mortgage Computer uses the term MIP, Mortgage Insurance Premium referring to any type of loan insurance (FHA, VA or Private). PMI refers to only Private Mortgage Insurance.

Mortgage Computer programs have always provided the Stop Percentage provision. When payment coupons are printed and MIP (PMI) has reached the stop percentage the program indicates MIP is no longer collected with "Stop Percentage Reached" printed on the coupon.

In contemplation of the additional requirements, MC included in the last update:

- The current LTV as a field used in setting up letters
- Each tickler notice can have its own message
- MIP Stop Date notice (03.25.01.04.04)
- Selection to print MIP Stop Date Notice (03.12.04.Select MIP Stop Date)

The next update is scheduled for the middle of July. This update will include the requirement for the disclosure. The year end release will include the requirement for the annual notification. MC will add to the MIP escrow Dealer Set Up another percentage field: e.g. Notification: 80 % and Automatic Stop: 78%

There are no special forms or verbiage required for PMI termination. MC will add to the programs the amortization schedule and verbiage for the disclosure, annual notice, and termination notice. There will be new forms for the Annual Escrow Analysis programs with the year end forms order.

If you have questions on PMI termination, call Customer Support, your legal counsel, or compliance officer.