When entering PMI in the DocMagic software, it is important to enter data in the correct fields. We have prepared this guide to help you through the process.
Monthly PMI
Section A and B (see image below) will always be left blank unless the borrower is required to pay the first year of PMI premiums up front. PMI may be either constant or tiered.
Constant PMI - Constant PMI means the 1st renewal rate percentage is the same throughout the loan. You will need to fill in Sections C and D based on your PMI certification. Then, Sections G and H will automatically default with the monthly PMI payment and PMI due date, respectively. Section H will default to the same date as your first mortgage payment date. For Section I, if you need to collect any months upfront at closing, you would enter it in this section.
For example, if you have a $100,000 loan for 30 years with a renewal rate of .78%, you would enter PMI information as follows: In Section C, you will need to enter in .78; in Section D, you will need to enter 360; The values in Sections G and H, will then default automatically, with Section G defaulting to $65.00.
The PMI monthly calculation for Section G is as follows:
loan amount X renewal rate # 1 e.g. $100,000 X .00780 = $65.00
12 12
H will default to the same date as your first mortgage payment date.
Tiered PMI - Tiered PMI has two levels of PMI (2 different renewal rates.) You will need to fill in Sections C and D based on your PMI certification. First, you would enter the renewal rate #1 percentage in Section C. Then, fill in Section D. The "1st Renewal # Months" field (Section D) equals the 1st renewal # of months in your PMI certification. The "Renewal Rate # 2" field (Section E) equals the lowest rate that is in the PMI certification. The "2nd Renewal # Months" field (section F) equals the 2nd renewal # of months, that are left on your loan. Then, Sections G and H will automatically default with the monthly PMI payment and PMI due date, respectively.
For example, if you have a 30 year loan with a 1st renewal rate of .78% and a 2nd renewal rate of .50%, you would enter PMI information as follows: In Section C, you will need to enter in .78; in Section D, you will need to enter in 120; in Section E, you will need to enter .50; in Section F, you will need to enter in 240; The values in Sections G and H, will then default automatically.
The PMI monthly calculation for Section G is as follows:
loan amount X renewal rate # 1 e.g. $100,000 X .00780 = $65.00
12 12
H will default to the same date as your first mortgage payment date. For Section I, if you need to collect any months upfront at closing, you would enter it in this section.
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If you have any questions on how to enter a monthly PMI, please contact DSI's Customer Service Department at (800) 649-1362.
DSI's Compliance Department invites you to review our other articles on canceling PMI and entering PMI/MMI information in DocMagic:
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