Posted by GOLDGIRL/CA on 6/19/10 5:52pm
Msg #341622

Question for RESPA experts

or anybody who might know: Does borrower-paid PMI or MI fall under the new HUD rules that state certain items cannot increase or increase much from what was listed on the GFE? Thanks!

Reply by John/CT on 6/19/10 6:47pm
Msg #341623

Re: PMI on GFE

Can increase on the HUD-1 ... but not more than 10%

Reply by John/CT on 6/19/10 6:51pm
Msg #341624

Should have clarified ...

PMI is one of the items that in TOTAL cannot increase by more than 10%. Sorry for the incomplete answer.

Reply by GOLDGIRL/CA on 6/19/10 10:51pm
Msg #341639

Re: Should have clarified ...

Thanks, John. I was curious because I had a signing recently where the PMI was $100 more than what was stated on the GFE. (Ten percent more would have been $6.) But I have never seen PMI listed among those charges that cannot increase more than 10% from the GFE. I think the underwriter slipped in the extra $100 and there was nothing the LO could do about it. I don't think she even knew. The borrower signed but was understandably unhappy. (That's an extra $1,200 a year she wasn't expecting, times 10 years or whenever she might be able to drop it). Anyway, wonder if this will escape the HUD audit test? If this happened to me I'd be on the phone to somebody first thing Monday, but even I wouldn't know who to start yelling at. And most borrowers have even less an idea of what's going on.