What is PMI?
Private mortgage insurance (PMI) protects the lender in case the borrower defaults on their mortgage loan. Lenders generally require PMI when your down payment on a home is less than 20% of the home’s total value.
The lender chooses the PMI company, so we recommend that you ask various lenders how much they charge for PMI coverage and choose the best lender for your needs.
PMI and your consumer rights
Under the federal Homeowners Protection Act (HPA), your lender must:
- Inform you in writing that you have PMI.
- Provide you with an explanation of coverage.
- Tell you when and how you can cancel PMI.
- Let you know annually when you qualify to cancel the coverage.
If you have a history of paying your monthly mortgage bill on time, you can ask to cancel the coverage once your mortgage is less than 80% of the home's value or purchase price.
How to file a complaint if your lender doesn’t comply with the HPA
First, find out who regulates your financial institution. Then, contact the appropriate organization that oversees or regulates it:
State-chartered credit unions
Washington state Dept. of Financial Institutions Division of Credit Unions
- Phone: 877-RING DFI (877-746-4334) or 360-902-8701
- Email: dcu@dfi.wa.gov
State-chartered banks
Washington state Dept. of Financial Institutions Division of Banks
- Phone: 877-RING DFI (877-746-4334) or 360-902-9704
- Email: banks@dfi.wa.gov
Non-depository lenders and servicers (mortgage companies that aren't a bank or a credit union)
Washington state Dept. of Financial Institutions Division of Consumer Services
- Phone: 877-RING DFI (877-746-4334) or 360-902-8703
- Email: csenforcecomplaints@dfi.wa.gov
Consumer Financial Protection Bureau
- Phone: 855-411-2372
Federally-chartered credit unions
National Credit Union Association (ncua.gov)
Federally-chartered banks
U.S. Department of Treasury, Office of the Comptroller of the Currency
- Phone: 800-613-6743
Federal Deposit Insurance Corporation (FDIC): BankFind Suite search: Find out which agency regulates your federally-chartered bank.
Consumer Financial Protection Bureau
- Phone: 855-411-2372