Q: How does Charlie calculate the MI scheduled termination date and other termination related defaults?
| Field | Value | How It’s Calculated |
|---|---|---|
| MI LTV Cutoff Percent | 78% | Defaulted to comply with HPA guidelines. |
| MI LTV Cutoff Type | Sales Price/Appraised Value | Based on loan purpose and comparison of sales price vs appraisal. |
| MI Scheduled Termination Date | xx/xx/xxxx | When loan reaches 78% LTV per amortization. |
| Borrower MI Termination Date | xx/xx/xxxx | When loan reaches 80% LTV, borrower can request cancellation. |
The MI (Mortgage Insurance) Scheduled Termination Date refers to the projected date when mortgage insurance is set to terminate based on standard amortization assumptions. Under the Homeowners Protection Act (HPA), MI is typically required to terminate when the loan balance reaches 78% Loan-to-Value (LTV), assuming timely payments.
Key Assumptions for These Defaults:
Payments follow the original amortization schedule (no prepayments or late payments).
Fixed interest rate and loan term are used.
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