Consumer complaint received 2025-08-11 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Private mortgage insurance (PMI)
Company: Mr. Cooper Group Inc.
State: NJ

Complaint narrative:
On XX/XX/XXXX I contacted Mr Cooper Live Support agents XXXX and XXXX XXXX to confirm the cancellation of my Private Mortgage Insurance as required by law. 

Under the XXXX XXXX XXXX XXXX XXXX. XXXX, I am entitled to PMI cancellation without additional inquiry and here is why. 

Facts : As confirmed in the transcript ( attached ), my initial appraisal was {$490000.00} ( full appraisal attached ). The loan originated in XXXX and has been in good standing since. I am currently in good standing and current on payments. The current balance is {$380000.00}. 

The law states ( see emphasized yellow highlighted sections ) : XXXX. Termination of private mortgage insurance ( a ) Borrower cancellation A requirement for private mortgage insurance in connection with a residential mortgage transaction shall be canceled on the cancellation date or any later date that the mortgagor fulfills all of the requirements under paragraphs ( 1 ) through ( 4 ), if the mortgagor ( 1 ) submits a request in writing to the servicer that cancellation be initiated ; ( 2 ) has a good payment history with respect to the residential mortgage ; ( 3 ) is current on the payments required by the terms of the residential mortgage transaction ; and ( 4 ) has satisfied any requirement of the holder of the mortgage ( as of the date of a request under paragraph ( 1 ) ) for ( A ) evidence ( of a type established in advance and made known to the mortgagor by the servicer promptly upon receipt of a request under paragraph ( 1 ) ) that the value of the property securing the mortgage has not declined below the original value of the property ; and ( B ) certification that the equity of the mortgagor in the residence securing the mortgage is unencumbered by a subordinate lien.

( b ) Automatic termination A requirement for private mortgage insurance in connection with a residential mortgage transaction shall terminate with respect to payments for that mortgage insurance made by the mortgagor ( 1 ) on the termination date if, on that date, the mortgagor is current on the payments required by the terms of the residential mortgage transaction ; or ( 2 ) if the mortgagor is not current on the termination date, on the first day of the first month beginning after the date that the mortgagor becomes current on the payments required by the terms of the residential mortgage transaction.

The termination date is defined as : 4901. Definitions ( 18 ) Termination date The term " termination date '' means ( A ) with respect to a fixed rate mortgage, the date on which the principal balance of the mortgage, based solely on the initial amortization schedule for that mortgage, and irrespective of the outstanding balance for that mortgage on that date, is first scheduled to reach 78 percent of the original value of the property securing the loan; and ( B ) with respect to an adjustable rate mortgage, the date on which the principal balance of the mortgage, based solely on the amortization schedule then in effect for that mortgage, and irrespective of the outstanding balance for that mortgage on that date, is first scheduled to reach 78 percent of the original value of the property securing the loan.

78 % of the original value ( {$490000.00} ) is a remaining loan balance of {$380000.00}. As noted above, the current balance of {$380000.00}, reached according to the initial amortization schedule, indicates that I have paid down PAST the 78 % LTV requirement for automatic cancellation and WELL PAST the 80 % requirement for requested cancellation.

Company response to consumer: Closed with explanation