Industry News

Private mortgage insurance cancellations double

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Seven years after the enactment of the law providing consumers the right to cancel their private mortgage insurance, the number of consumers canceling their insurance has doubled, according to eAppraiseIT. With the doubling of cancellation, there's also been a growing trend of mortgage servicers outsourcing parts of the mortgage insurance cancellation process, eAppraiseIT said. To date this year, eAppraiseIT, on behalf of servicers, said it has processed more than 10,000 requests from consumers to cancel their mortgage insurance. EAppraiseIT is a provider of real estate valuation services. "EAppraiseIT has been providing PMI release services to mortgage servicers on an outsourced basis since 2002, but we have noticed a 110 percent increase in usage this year," said Diane Valadez, senior vice president of valuation consulting. Servicers automatically route PMI cancellation requests from borrowers to eAppraiseIT's private-label call center. EAppraiseIT then counsels the borrower ...