PMI Increases Eligibility for Modification Program

PMI Mortgage Insurance Co., Walnut Creek, Calif. has expanded its refinance-to-modification program so it can be used with all loans it insures, not just Home Affordable Refinance Program eligible loans owned or guaranteed by either Fannie Mae or Freddie Mac. With this program, the coverage percentage and premium rate remain the same and the existing insurance certificate is modified to cover the new refinanced loan. To minimize borrower expenses, PMI is also not charging fees to modify the existing insurance certificate for either the New Lender/Servicer or Same Lender/Servicers Programs. PMI's modification of the existing insurance allows coverage to be extended to the new refinanced loan, even though the property value may be lower than when the original loan was insured and may not be eligible for mortgage insurance coverage today. To be eligible, the borrower must be current on their existing loan and the new loan should improve the borrower's financial position by reducing the payment, interest rate or principal balance; extending the fixed-payment period on an adjustable rate mortgage; an extension of the loan or amortization term; or by giving the borrower a more stable payment product. Additional requirements may apply depending on whether the existing or new lender/servicer is requesting the coverage modification.