Mortgage insurance cancellation request
How do we handle a borrower's request to cancel private mortgage insurance with the eligibility, the payment history and the valuation checked and the decision recorded?
Run the request against the Act's tests and the investor's rules. Callvu identifies the borrower, prefills the loan (the original value, the current principal, the amortization schedule, the payment history), classifies the request (borrower-requested cancellation at 80 percent of the original value, automatic termination at 78 percent, or cancellation based on current value under the investor's rules), checks the good payment history and the conditions, orders a valuation where the request requires one through the appraisal process, routes the decision to the servicing analyst in the Decision Desk, and writes the cancellation or the denial with reasons to servicing.
In scopeComplex: multi-party handoffsCallvu moves: chase and verify, decide, write back
Last updated November 7, 2026.
The problem today
The borrower asked to cancel PMI, the analyst denied it without checking the automatic termination date, and the premium kept being charged.
A borrower writes to cancel their mortgage insurance. The servicing analyst looks at the current balance, denies the request, and nobody checks that automatic termination was due two months ago. The borrower pays premiums the Act says must stop, and the refund comes with the complaint.
The Homeowners Protection Act sets three paths: borrower-requested cancellation when the principal reaches 80 percent of the original value (with a good payment history and, at the servicer's option, evidence the value has not declined and no subordinate liens), automatic termination at 78 percent on the schedule if the loan is current, and final termination at the midpoint of the amortization. The investors add current-value cancellation with their own seasoning and valuation rules. Each path has a test, and the tests are computations on the loan's data.
A borrower who asks is a borrower who was probably eligible already.
How it runs
From the requestto the system of record.
A borrower requests cancellation in any channel, or the loan reaches a date on the amortization schedule that triggers automatic or final termination. Callvu opens the case with the loan's data.
- Borrower
- Requests, receives the eligibility explanation, and pays for a valuation where the path requires one.
- Servicing analyst
- Decides the request in the Decision Desk with the tests' results.
- Appraiser
- Delivers the valuation where ordered through the appraisal process.
- Callvu
- Prefills, classifies the path, runs the tests, orders the valuation, routes the decision and writes.
Prefill and classify the path
The original value (the lesser of the sales price and the appraised value at origination), the current principal balance, the amortization schedule, the payment history, the loan's seasoning and any subordinate liens are prefilled from servicing. The request is classified: borrower-requested at 80 percent of original value, automatic termination at 78 percent, final termination at the midpoint, or current-value cancellation under the investor's rules.
Run the tests
The loan-to-value test for the path is computed; the good payment history test (no 30-day late in the last 12 months and no 60-day late in the last 24, as the rule and the investor define) is run; the conditions the servicer may require (a current valuation showing no decline, no subordinate liens) are listed. A valuation is ordered through the appraisal process where the path requires one, at the borrower's cost where the rules allow.
Decide
The analyst decides in the Decision Desk with the tests and the valuation, and only the allowed outcomes: cancel as of the date the rules set, deny with the reasons and what would make the loan eligible, or hold for the valuation. Automatic and final terminations are applied by rule on the schedule when the loan is current.
Write back
The cancellation (and the refund of any premium collected after the termination date) or the denial with reasons is written to the servicing system and the mortgage insurer is notified; the borrower receives the written decision within the rule's period.
Where it ends: The request was tested under the right path with the loan's data, decided with reasons, and the cancellation or denial with the refund is on servicing, with automatic terminations applied by rule. The Decision Trace shows the path, the tests and the decision; the Audit Trace shows the request, the valuation and the write. The Callvu moves in this process are chase and verify, decide and write back.
Runtime enforcement
What is enforcedwhile the work runs.
The regulations preloaded in Callvu Studio and the bank's own policies, applied as steps that run, not lines in a binder. A step that breaks a rule does not run, so a completed run was compliant.
The handoff
Between the front doorand the back office.
The front door
The borrower in any channel, or the amortization schedule.
The back office
The analyst decides from computed tests; terminations the Act mandates happen by rule.
The Decision Desk
- A borrower-requested or current-value cancellation goes to the servicing analyst in the Decision Desk with the tests and the valuation, and only cancel, deny with reasons, or hold for valuation.
Proof
In scope.Proof at scale, not one process at a time.
The kind of process Callvu runs in production for customers in this industry. Ask for a reference on this exact process. The results below are the industry's published proof; each claim code links to its record on agents.callvu.com.
Questions
What buyers ask next,answered plainly.
When can the borrower cancel?
When the principal reaches 80 percent of the original value with a good payment history and the conditions the servicer may require; the investors also allow current-value cancellation with seasoning. The classification picks the path.
What happens automatically?
Termination at 78 percent on the schedule if the loan is current, and at the amortization midpoint, applied by rule with any premium collected after the date refunded within 45 days.
What does a denial say?
The reasons and what would make the loan eligible, in writing within the period.
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