Advice needed on how borrower should proceed with collecting overpaid Mortgage Insurance Premium.
FHA loan met 79% threshold as of September 2016 and borrower requested cancellation of MIP payment early 2019. Amount overpaid is just shy of $1500. Borrower requested refund via loan servicing company but request was denied.
Best way to proceed?
@Kole K. Hey Kole see if this helps any.
When was the loan originated?
The loan “met the 79% threshold...” 79% of what, original purchase price/appraisal or current value?
What %LTV was the original loan?
For clarification, MIP was cancelled 4/1/2019 by the loan servicing company per borrower request. Loan was originated prior to 2013.
When asked about MIP earlier this year (2019), Loan servicing company stated 79% LTV was achieved (September 2016 ?)
I am not certain if the 79% refers to original purchase price, appraisal, etc but there is sufficient equity to meet that all the above.
In summary, loan servicing company continued to collect MIP past their 79% LTV threshold until borrower requested a cancellation and an estimated $1500 was overpaid into MIP. Is it possible to recoup these funds? Originally the loan servicing company stated the over payment would be refunded but later the request was denied with no explanation.