Which loans are covered
The legal requirements apply to mortgages for single-family principal residences that closed on or after July 29, 1999. Loans through FHA or VA have different requirements, and different rules apply when the lender pays for the insurance.
Cancellation on request
PMI is canceled on the cancellation date, or later once you meet every condition: a written request to the servicer, a good payment history, being current, and, if the holder asks, evidence the property's value hasn't declined below the original value and certification that there is no subordinate lien.
What «good payment history» means
In the statute's definition: no payment 60 days or more past due in the year that began two years before the date, and none 30 days or more past due in the most recent year.
Automatic termination
On the termination date, when the balance is scheduled under the initial amortization schedule to reach 78 percent of the original value, PMI ends if you are current. If you are not, it ends on the first day of the month after you catch up. No premiums can be required more than 30 days after that.
Final termination
Whatever else happens, PMI cannot be required past the first day of the month that follows the amortization period's midpoint, if you are current. For a loan classified as high-risk when it closed, the request and automatic rules do not apply. Depending on who made that classification, PMI ends when the scheduled balance reaches 77 percent of the original value, or at the midpoint.
After it ends
The servicer must return all unearned premiums within 45 days of the cancellation or termination. If your loan is modified, the dates are recalculated to the new terms.
Your yearly reminder
When PMI is required, the servicer has to send you an annual written statement about your rights to cancel or terminate it.