Washington Mutual ripoff Milwaukee Wisconsin

Don't get upset at WaMu, they don't have to do anything if your loan doesn't meet the following guidelines: These are straight from Fannie Mae.

When a mortgage equals more than 80% of the value; although borrowers pay the premium, the purpose of PMI is to insure the lender in case the borrower defaults. In recent years, many lenders were criticized for failing to drop PMI even after borrowers had paid down their loans to well below the 80% mark.

In July 1999, a federal law kicked in making it easier to delete PMI on certain loans. Two influential mortgage financing agencies, Fannie Mae and Freddie Mac, also directed their lenders to loosen requirements for getting rid of PMI.

The law Congress passed affects only home loans made after July 29, 1999, and requires lenders to waive PMI only when the amount owed reaches 80% of the original property value--the value at the time the home was purchased or appraised for a refinancing. The home's current value isn't taken into account. Lenders are required to automatically cancel PMI when the loan value reaches 78% of the purchase price.

Fannie Mae and Freddie Mac, which purchase home loans for sale to investors, adopted much more lenient standards for dropping PMI and applied them to all the loans on their books, not just those made since July. The government-chartered corporations directed their lenders to take current value into consideration when borrowers ask to have PMI canceled. As with the federal law, only borrowers who are up to date on their payments need apply. Getting PMI Removed

New rules make it easier to cancel private mortgage insurance, which lenders typically require when borrowers make a down payment worth less than 20% of the home's price. Here's what you need to know:

1. Stay up to date on your loan payments. Typically, homeowners must not have had any payments 30 days or more past due within the last 12 months or 60 days or more past due in the last 24 months.

2. Contact your lender to see who owns your loan and what the investor's policy is on removing PMI. If your loan was sold to mortgage agencies Fannie Mae or Freddie Mac, you can check with the agency for more details. Fannie Mae's number is (800) 732-6643, and Freddie Mac's number is (800) 373-3343.

3. If your loan is owned by either Fannie Mae or Freddie Mac, the criteria for canceling PMI depend on the loan's age. If the loan is 2 to 5 years old, you may request PMI be canceled when the value of the loan reaches 75% of the home's current market value. If the loan is more than 5 years old, you can request cancellation when the loan reaches 80% of the home's current market value.

4. If the loan is not owned by either agency, the guidelines are set by whatever investor bought the loan. If the loan was made after July 29, 1999, however, a federal law requires that PMI be canceled at your request when the loan's value reaches 80% of the purchase price. Cancellation is automatic when the value reaches 78% of the purchase price. If your loan is an FHA loan, mortgage insurance cannot be waived.

5. If your loan meets the investor's criteria for removing PMI, ask the lender to start the process of getting it removed. The lender must order the appraisal or broker's opinion; if you order one on your own, you'll end up paying twice.