Escrow Insurance Support | RightPath Servicing (2024)

This is required for all mortgages to protect your home and investment and it can be paid through your escrow account.

• The full replacement cost of the dwelling and insurable improvements made to it.


• The unpaid principal balance of the loan.


• The maximum allowed through the National Flood Insurance Program (NFIP), which is $250,000.

Some states in high-risk areas—like the Gulf Coast and Hawaii—require this additional insurance separate from your homeowners (hazard) policy. If required, it can be paid through your escrow account.

This can be required if you live in a condo townhome. If required, your property association would manage it and include your payments as part of your HOA dues, so it will not be paid through your escrow account.

May be required for people living in an area at high risk for movement of the ground surface in areas on top of former underground mines. This will not be paid through your escrow account.

You need enough insurance to cover the lower of either the replacement cost of the home or the remaining principal balance on your loan. So, if your unpaid principal balance (UPB) is $80,000 but the replacement cost is $120,000, you need to carry a minimum insurance of $80,000 total.

(There may be exceptions to this for properties in certain states. Your insurance carrier can tell you more about this.)

There are a lot of insurance companies out there, but insurance companies must carry at least an A rating from A.M. Best to provide coverage on RightPath Servicing accounts.

Please contact us if you have questions about whether your preferred insurance providers qualify.

If there are any changes to your insurance policy or carrier, please let us know as soon as possible. Visit www.mycoverageinfo.com/rightpathservicing and follow the simple instructions to upload your Declarations Page.

Or send the Declarations Page via:

• Email: [emailprotected]


• Fax: 800-687-4729


• Mail:
  RightPath Servicing
  PO Box 7729
  Springfield, OH 45501

Be sure to include your loan number and most up-to-date contact information.

Feel free to call us if you have any questions about insurance changes. It’s important we’re kept in the loop so we can keep your escrow account up to date and use its funds properly on your behalf.

You can review your current insurance coverage information at the site we just mentioned: www.mycoverageinfo.com/rightpathservicing.

Note: The following Mortgagee Clause must appear on your insurance policy. If it’s not there, contact your insurer and let them know.

Nationstar Mortgage LLC
Its Successors and/or Assigns
PO Box 7729
Springfield, OH 45501

Mortgage insurance protects the investor if the borrower defaults on the loan. It lowers the investor’s risk when funding a home loan.

In most cases, if you pay at least 20% down on your home, you’re not required to carry mortgage insurance. If you are required to carry mortgage insurance, removal of the insurance may occur when the equity in your home reaches a certain percentage.

Depending on the type of loan you have, your mortgage insurance may go by different names. It can be called Private Mortgage Insurance (PMI) or Mortgage Insurance Premium (MIP).

If you’re required to carry PMI, we’ll cancel it automatically on the date your loan-to-value (LTV) ratio is scheduled to reach 78%.

Your LTV is the amount you’ve borrowed, divided by the original appraised value of the property.

Example:

If you borrow $85,000 to buy a house appraised at $100,000, your loan-to-value ratio is 85%. (85,000 / 100,000 = 0.85, also known as 85%)

Based on the original property value and the loan terms, we’ll project the date when your LTV will reach 78%, and we’ll plan to cancel your PMI on that date.

Note: This projected date for automatic cancellation is fixed and can’t be moved up.

However, you can submit a request for early cancellation of PMI before the automatic termination date.

Your property must reach at least 20% equity—or 80% LTV—to be eligible for an early cancellation. Also, other conditions may apply to early cancellation depending on the loan investor. Here are the main ones:

• Your loan must be current.
  
• In the last 12 months, you can’t have been more than 30 days late on any payment.


• In the last 24 months, you can’t have been more than 60 days late on any payment.


• If you have not reached an LTV of 80%, we may be able to order an official appraisal of your property to verify if the current value has reached the 20% equity requirement.

(The appraisal needs to happen within 90 days of your PMI cancellation request, and you will be responsible for the appraisal cost.)

To discuss your specific requirements for requesting PMI cancellation, please contact us.

You can send PMI cancellation requests to:

RightPath Servicing
Attn: Escrow Research
800 State Highway 121 Bypass
Lewisville, TX 75067

Cancellation requests by mail must include an explicit request to cancel PMI, your loan number, the date, and the signatures of all borrowers.

There are too many requirements, caveats, and unique scenarios to list here, but please contact us to review your options for cancelling MIP.