The Client
A Residential Mortgage Service
Challenge
- Borrowers’ request for PMI cancellation being declined even if they had 80% LTV threshold as mandated by the Homeowners Protection Act. Different reasons cited for denial
- Providing incorrect/ inaccurate reason for denial misleads the consumer and prevents the consumer from taking corrective action to cancel the PMI in a timely manner
Solution and Execution
- The Copasys® solution:
- Pre-defines the scheduled PMI cancellation date when the LTV of the property reaches 80% of the original loan value or calculates the eligible LTV to cancel the borrower-initiated PMI
- Highlights all accounts that have scheduled PMI cancellation dates or borrower-initiated PMI requests which are not eligible for PMI cancellation
Value Delivered
- Audit results is published as ‘Compliant’ when accurate denial reasons are cited and ‘Noncompliant’ when inaccurate denial reasons are cited on the denial letter sent to the consumers
- Initiating certain PMI related escrow testing rules via Copasys coupled with remediation helps:
- Significantly reduce the consumers risk of overpaying funds due to the inappropriate collection of PMI payments