[JGo9]

We are thinking about doing a lender credit to pay for borrower-paid single-pay mortgage insurance, instead of going with the lender paid MI option. There is a pretty significant price difference between the two. I know how to handle this when it comes to TRID but wanted to make sure this would not create any other issues, as it feels odd to do the borrower-paid MI option and then do a lender credit to off-set it when there is a more expensive lender-paid option.

Thanks!

[jholzknecht]

Section 4905(a)(2) of the Homeowner Protection Act (HPA) states that “Lender paid mortgage insurance means private mortgage insurance that is required in connection with a residential mortgage transaction, payments for which are made by a person other than the borrower.” The HPA requirements for lender paid mortgage insurance are very different that for borrower paid mortgage insurance.

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