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PennyMac refusing appraisal for PMI removal re Borrower-Initiated Termination of PMI Current Value

tdm2580
Member

PennyMac refusing appraisal for PMI removal re Borrower-Initiated Termination of PMI Current Value

Conventional loan in Florida, with Penny Mac, initated in 2018 so under 5 years but over 2 years.  Requested an appraisal to remove PMI, via Borrower-Initiated Termination of Conventional Mortgage Insurance Based on Current Value of the Property written request.  Penny Mac denied the request for appraisal and indicated "your investor only authorizes a BPO or Broker Price Opinion."  I am requesting an appraisal instead of BPO for a reason, as I know it's more costly but I also know that it is much more accurate in my scenario.  Does anyone have experience with this?  

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VALoanMaster
Valued Contributor

Re: PennyMac refusing appraisal for PMI removal re Borrower-Initiated Termination of PMI Current Val


@tdm2580 wrote:

Conventional loan in Florida, with Penny Mac, initated in 2018 so under 5 years but over 2 years.  Requested an appraisal to remove PMI, via Borrower-Initiated Termination of Conventional Mortgage Insurance Based on Current Value of the Property written request.  Penny Mac denied the request for appraisal and indicated "your investor only authorizes a BPO or Broker Price Opinion."  I am requesting an appraisal instead of BPO for a reason, as I know it's more costly but I also know that it is much more accurate in my scenario.  Does anyone have experience with this?  


Like I said in your other post, according to the HPA, Penny Mac is not legally required to do anything to help you get rid of your PMI. As long as the PMI is in place, the investor is protected if you default so it makes sense they would keep in it place as long as possible.

https://www.federalreserve.gov/boarddocs/supmanual/cch/hpa.pdf

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