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Path: utzoo!watmath!clyde!bonnie!akgua!akgub!cylixd!dave
From: dave@cylixd.UUCP (Dave Kirby)
Newsgroups: net.consumers
Subject: Re: You may be able to cancel your Mortgage Insurance Premium
Message-ID: <336@cylixd.UUCP>
Date: Wed, 2-Oct-85 10:23:20 EDT
Article-I.D.: cylixd.336
Posted: Wed Oct  2 10:23:20 1985
Date-Received: Thu, 3-Oct-85 07:28:30 EDT
References: <292@cylixd.UUCP> <42000013@hpfcla.UUCP>
Reply-To: dave@cylixd.UUCP (Dave Kirby)
Organization: RCA Cylix Communications , Memphis, TN
Lines: 46

In article <42000013@hpfcla.UUCP> ajs@hpfcla.UUCP writes:
>>... You can write the lender and ask them to cancel the insurance,
>> thereby eliminating the MIP from your monthly note.
>
>Like hell!  I have a vanilla FHA loan issued some time back by a very
>nice company.  When I wrote them about it, they essentially said "Sorry,
>we have no incentive to drop the insurance".  Seems that they have total
>control over it (do they?) and no reason to drop it.
>
>What did I do wrong?  How can I *really* get it dropped?
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I went back to the article, and unfortunately it is carefully worded
to say, essentially, that you may REQUEST that your mortgage insurance
be dropped, but the article carefully omits any idea that the lender
MUST drop it. You might call FHA to see if they can do anything about it.

If you have good credit, and have always paid your bills on time, and
all that, AND if you can show that your mortgage balance is less than
80% of the market value of your house, then it sounds to me like your
lender may be charging you and pocketing the premium themselves. This,
according to my article, is more widespread than lenders like to admit.
If you're good at getting nasty, you might call the lender, discuss your
good credit rating, and then demand to know why they insist on
carrying the unnecessary insurance. If they stand fast, demand that they
tell you who the insurance is with, and check them out. If you find any-
thing rotten, call the FHA office. Lenders hate to deal with FHA because
even if they are innocent they still waste a lot of time and money
filling out FHA forms.

In fact, you can sometimes get action just by threatening to call FHA.
Lenders cringe at the thought of having to hassle with FHA, and they
sometimes give in on minor points to avoid the paperwork and expense.
So if the lender insists on keeping the mortgage insurance premium
in spite of your credit, you might try threatening them with an FHA
filing and see if this gets them off their duffs.

Good luck. Let me know how it turns out. In a couple of years I will be
ready to drop my MIP.


-----------------------------------------------------------------
Dave Kirby    ( ...!ihnp4!akgub!cylixd!dave)

(The views expressed herein are the exclusive property of Dave Kirby.
Any person, living or dead, found with the same or similar opinions
will be prosecuted to the fullest extent of law.)


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