Mortgage Lending: 4.17.4.1 Overview
Because a PMI requirement increases the borrower’s monthly mortgage payment, it is in the borrower’s best interest to end the requirement as soon as possible. With lender-paid PMI, this can only be done by paying off or refinancing the entire loan. But, for borrower-paid PMI, the HPA allows—and, in some circumstances, requires—ending a PMI requirement during the loan term.
The HPA designates three points at which the borrower’s PMI requirement may or must end: