Seller/Servicer Memorandum 23-01
Date: January 4, 2023
From: Jan Miyagishima
Director, Mortgage Operations
SERVICING GUIDE REVISIONS: CONTACT SERVICING
Release of a CO-BORROWER
· Updated to “Release of a CO-BORROWER or CO-SIGNOR”.
· Changed coverage to be based on unpaid principal balance versus appraised value.
Cancellation of Mortgage Insurance
· 2. Borrower requested PMI deletion
Servicer must verify AHFC requirements are met prior to completing MI deletion based on borrower’s request. Updated requirements are listed and no prior approval is required by AHFC.
· 3. Termination of Conventional Mortgage Insurance Based on Improvements
Updated to include example of substantial improvements and LTV of 80% or less.
· 5. Submission to AHFC
Updated to advise that supporting documentation must be maintained in Servicer’s files.
· Updated to advise Servicer is required to start reviewing EPD and make contact between the 17th and the end of month.
· Form was updated to reflect the change from 3 business days to 5 business days.
· Added “cancellation due to” section.