CRT-Eligible Profile Summary
Comparing MI Options
Key Feature
Buyer of MI
MI Premium Paid By
Can borrower lower mortgage payment
through MI cancellation?
BPMI
Lender
Borrower
Yes
LPMI
Lender
Lender
No
MI Cancellation Provision
Length / Term of Coverage
Policy
Origination Guidelines
Loan Quality Reviews
Claim Filing
■ Must be automatically canceled, e.g., when LTV ratio
scheduled to reach 78%
May be canceled by borrower based upon paydown of
loan or property appreciation
Terminates upon cancellation (see MI cancellation
provisions above)
Approved MI companies, selected by borrower/lender
Fannie Mae and MI guidelines
Fannie Mae and MI guidelines
Fannie Mae files claims
None coverage exists for life of loan
-
Life of Loan
Approved MI Companies, selected by lender
Fannie Mae and MI guidelines
Fannie Mae and MI guidelines
Fannie Mae files claims
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