1 Customer

  • A Residential Mortgage Servicer

2 Business Situation

  • In Escrow: 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
  • Impact - 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

3 Solutioning

  • SLK’s compliance audit and QC platform, Copasys:
    • 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.

4 Execution

  • Audit results is published as ‘Compliant’ when accurate denial reasons are cited and ‘Non-compliant’ when inaccurate denial reasons are cited on the denial letter sent to the consumers

5 Value Delivered

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