Common use of Primary Mortgage Insurance Cancellation Clause in Contracts

Primary Mortgage Insurance Cancellation. If a Borrower requests cancellation of the Primary Mortgage Insurance policy with respect to his Mortgaged Property, the following requirements must be met: (a) The current LTV ratio must be 80% or less. The current LTV ratio must be calculated by dividing the Unpaid Principal Balance of the related Mortgage Loan by the Current Value of the Mortgaged Property; (b) The related Mortgage Loan may not have been 30 days or more delinquent within the preceding twelve months; and (c) There may not have been any other default under the terms of the related Mortgage Loan at any time during the preceding twelve months. If there are indications that the Current Value of the Mortgaged Property has declined, the Servicer shall obtain an Appraisal Report with respect to such Mortgaged Property that is not more than 60 days old. The Current Value of such Mortgaged Property set forth the Appraisal Report shall be used as the divisor in clause (a) hereof to determine whether the recalculated current LTV is 80% or less. If the recalculated current LTV is greater, the Primary Mortgage Insurance cancellation request will be denied.