Seller/Servicer Memorandum 23-01

Date:               January 4, 2023

From:               Jan Miyagishima

                        Director, Mortgage Operations


Release of a CO-BORROWER

Section 12000.09

·         Updated to “Release of a CO-BORROWER or CO-SIGNOR”.

Insurance Requirements

Section 12000.02.A.7

·         Changed coverage to be based on unpaid principal balance versus appraised value.

Cancellation of Mortgage Insurance

Section 12000.04

·         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.


Section 13000.06.A.2

·         Updated to advise Servicer is required to start reviewing EPD and make contact between the 17th and the end of month.

Form SER-92

·         Form was updated to reflect the change from 3 business days to 5 business days.

Form SER-75

·         Added “cancellation due to” section.