PMI Processing Part 2
PMI Processing on Fiserv Premier® – Part 2 of 2 (by Brent Reynolds)
In this part 2 of 2 learning sessions, we will be discussing PMI processing on Fiserv Premier®. Most of the processes can be automated but there are a few things to consider in regards to notices and disclosures.
There are four main notices or disclosures around PMI processing:
- Initial PMI Disclosure
- Annual Disclosure
- Borrower Requested Cancellation Notice
- Automatic Termination Notice
Initial PMI Disclosure
Typically this is handled through the LOS and or closing process. Keep in mind this initial disclosure may need to be revisited if the loan is modified or if there is a renewal.
The Annual Disclosure can be automated on the Premier® system by running certain LAS programs. Contact Peak Consulting for the full details. Because the Premier® system today cannot automate both the Cancellation and Termination Notices (because they use different Ratio Balance Calculation Types), we recommend using the Annual Disclosure to notify customers of their Borrower Requested Cancellation rights. This covers the financial institution’s obligation to provide cancellation information and still be able to automate the Automatic Termination Notice.
Borrower Requested Cancellation Notice
As mentioned above, we recommend this be addressed through an Annual Disclosure. Most of our clients have an approval process that needs to be reviewed when considering a Borrower Requested Cancellation. There may be an examination of payment history, appraisal, etc. needed so it is difficult to automate this process. The outcome of the analysis will determine if a Cancellation Notice or a Cancellation Denial Notice is sent.
Automatic Termination Notice
This notice can be fully automated to include all the account level changes that need to be made to the schedule, escrow addenda, PMI addenda, and so forth. Keep in mind that there are several considerations when setting up the automation. For instance, there is a different Ratio Balance Calculation Type depending on if the loan is a Fixed Rate, a Variable Rate, or a Modified loan.
For further assistance with PMI Automation, contact us at email@example.com. We’d love to help you assess your portfolio, free of charge, and to answer general questions.
Remember, even if you have only a few accounts the automation will save time and more importantly help eliminate errors.