Private Mortgage Insurance Abuse
After the great real estate crash that started in 2006-07, some homeowners were able to negotiate loan modifications with their lenders. Where these loan modifications lowered the principal balance owed, the mortgage company was supposed to change the Private Mortgage Insurance (PMI) end date, potentially shortening it by years. However, some companies didn’t change it, and some even extended it.
PMI is the insurance that mortgage companies require when you do not have a large down payment. Not changing the end date is a big deal because PMI can cost a homeowner hundreds of dollars per month. The federal law that governs PMI, the Home Owner Protection Act, requires lenders to stop charging PMI under certain circumstances. Federal judges have agreed that some mortgage service companies wrongfully overcharged their customers and violated the law.
If you received a loan modification that changed your principal balance but continued to pay PMI until your original PMI ending date, you might have a claim against your mortgage company.
Skinner Law Firm wants to help those who have been wrongfully overcharged PMI. If you have received a loan modification that changed your principal balance AND you think you may have paid PMI for too long, your mortgage servicer might be violating the Home Owners Protection Act. We might be able to help you. Contact us at Skinner Law Firm for a free consultation.
Andrew Skinner is the lead attorney for PMI Abuse cases.