couple in front of home, PMI removal

Homeowners Protection Act of 1998 (HPA)

For loans covered by the Homeowners Protection Act of 1998 (HPA), lenders are required to remove  Private Mortgage Insurance (PMI) when your original amortized balance reaches 78% loan-to-value (LTV), provided you are up to date on your payments. You may also request to have the PMI removed from your loan under certain circumstances. Below are a few of the most common scenarios.

Original Value of Your Home

You can request that PMI be removed from your loan when your balance reaches 80% loan-to-value (LTV)* based on the original value of your home when your loan closed.  If you are requesting to have PMI removed based on the original value, you must

  • Request a property valuation ordered through Umpqua Bank to confirm your home's value hasn't declined since the closing of your loan. You will be required to provide a deposit of $150.00 and will receive an invoice or refund depending on the actual cost of the valuation.
  • Not have any subordinate liens on the property 
  • Not have had any 30-day late payments within the past 12 months.
  • Not have had any 60-day late payments within the last 24 months.

Current Value of Your Home

You can also request to have PMI removed based on the current value of your home.  This will sometimes apply if you've made substantial improvements to your home or a large principal reduction in your loan balance. If you're requesting to have PMI removed based on the current value, you must:

  • Request a property valuation ordered through Umpqua Bank to confirm your home's current value. You will be required to provide a deposit of $150.00 and will receive an invoice or refund depending on the actual cost of the valuation. 
  • Not have any subordinate liens on the property. 
  • Not have had any 30-day late payments within the past 12 months.
  • Not have had any 60-day late payments within the last 24 months.
  • Have a LTV of 75% or less based on the new property value, if your loan is between two and five years old.
  • Have a LTV of 80% or less based on the new property value, if your loan is over five years old.

FHA Loans

Mortgage Insurance Premium (MIP) may be canceled when your FHA loan meets certain criteria, depending on when you either closed on your loan or applied for it. 

  • Closed between July 1991 and December 2000: You'll have MIP for as long as you have the loan.
  • Applied between January 2001 and June 2, 2013: MIP will be removed when you reach 78% loan-to-value (LTV), and you've owned your home for at least 5 years.
  • Applied on or after June 3, 2013: If your original loan amount was less than 90% LTV, MIP will be removed after 11 years. If the loan amount was 90% LTV or more, you'll have MIP for as long as you have the loan.
  • A borrower request option does not exist for this loan type.
*The amount you owe on your loan divided by your home's original value, which is either the price you paid for it or the appraised value at closing, whichever is less. This number is always expressed as a percentage.

Moving forward

These guidelines don't apply to every loan. There are also specific guidelines based on the investor that owns your loan, as well as the occupancy status. If you have questions or need additional information please call us at 1-877-367-5773.

If you think you meet the criteria and would like to move forward, please:

  1. print the Mortgage Insurance removal request form
  2. fill-out, sign and date the form
  3. enclose a check payable to Umpqua Bank for the valuation fee 
  4. return the completed form to us at:

    Umpqua Bank
    PO Box 2216
    Spokane WA 99210