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
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