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.
FHA Loan
An FHA loan is a loan insured by the Federal Housing Administration and made by an approved lender in accordance with the FHA's regulations. These FHA-insured mortgages require insurance, also known as mutual mortgage insurance (MMI). With FHA loans, the borrower will need to pay an upfront mortgage insurance premium (MIP) as well as a monthly MIP. The below screen shot illustrates how one would enter the loan amount when there is MIP.
When there is MIP, the "Loan Amount" field must be entered in the following manner. The "Loan Amount" equals the total loan amount, plus the MIP that is being charged. For example, if the loan amount is $100,000 and MIP is $5,000, these numbers would be added together and the sum total of $105,000 would be entered in the "Loan Amount" field.
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Next, you will need to make sure that you have "MIP Financed" entered as a charge. You would select this charge from the DocMagic "Charges" menu in the worksheet, under the "Code" column (see image below). Make sure you fill out the rest of the information in the row, as shown on the screen, such as: to whom MIP would be paid, the amount of MIP financed, whether the borrower or other party is paying MIP, etc.
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Finally, you will need to leave Sections A-F blank (see image below). Section G will automatically default with your monthly MMI amount. And, 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.
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If you have any questions concerning this article, 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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