MB Servicing - Private Mortgage Insurance & Home Appraisal Experts

What is PMI (Private Mortgage Insurance)?
PMI is required by your lender if you put less than a 20% down payment when you purchased your home. PMI covers against a loss by a lender (only the difference of the required 20% down payment and the percentage you actually put down) in the event of foreclosure on a borrower. The premium is paid by the borrower and is included in the mortgage payment.

Does PMI (Private Mortgage Insurance) protect me?
No! PMI only protects the lender in the event of a foreclosure on your property.

How do I qualify for PMI (Private Mortgage Insurance) Release?
Several factors can affect your eligibility for PMI release based upon your lender's qualifying requirements*, including but not limited to payment history, LTV (loan to value) ratio, length of time since you have taken out your home mortgage, and the current appraised value of your home. MB Servicing will work with you to explain the PMI Release Process, and provide your appraisal product based upon your lenders' requirements.

*The "Homeowners Protection Act of 1998 prescribes guidelines for mandatory termination of Private Mortgage Insurance (PMI) for a residential mortgage when the principal balance is first scheduled to reach or actually reaches 80 percent of the original value of the property securing the mortgage loan, including: (1) a mortgagor's written cancellation request; (2) automatic termination; (3) final termination; (4) no further payments; and (5) return of unearned premiums." (Reference Pub. L No. 105-216).

How will I know if my PMI (Private Mortgage Insurance) will be released?
Once your Lender receives one of the original appraisal reports, they will perform the equity analysis required for PMI release determination, and will notify you in writing with their findings.

Why do I need an appraisal?
The appraisal is what determines the current Value of your property, and is required by your Lender to complete their LTV ratio calculations.

What is an appraisal?
An appraisal is an Opinion of Value based upon a factual analysis of your home. It involves measurements, sketches, records, photos, plus an interior/exterior inspection of the property. There are three common approaches used by an appraiser to arrive at a market property value, which are:

Cost Approach to Value is what it would cost to replace or reproduce the improvements as of the date of the appraisal, less the Physical Deterioration, the Functional Obsolescence, and the Economic Obsolescence. The remainder is added to the Land Value.
Comparison Approach to Value utilizes other "benchmark" properties of similar size, quality and location that have been recently sold. A comparison is made between the benchmark properties and the subject (your) property to determine the subject property Value.
Income Approach to Value is of primary importance in determining the value of income producing properties and has little weight in residential type properties. This approach provides an objective estimate of what a prudent investor would pay based upon the net income the property produces.

The appraiser will use the Comparison Approach for your residential property appraisal. Once the appraiser completes a thorough analysis of all general and specific data gathered from the market, a final Opinion of Value is rendered on the appraisal report.

How much time does an appraisal inspection take?
Generally an appraiser does not require more than 15 to 30 minutes to complete a physical inspection of your home. What you must realize, this is only a small portion of the appraisers' time required to complete the appraisal report. They must also research and complete a thorough analysis of all general and specific data gathered from the market, as described in the Comparison Approach stated above.

Why can't I use my last appraisal?
Under your Lender's guidelines, the new appraisal is required to determine how much, if any, the property has appreciated in Value since the last appraisal was performed.

If I purchased an appraisal within the last 12 months, can I use this appraisal?
This will depend upon your Lender's guidelines. If a certified state licensed appraiser has completed your appraisal, you may have the ability to purchase an Appraisal Update based upon your last appraisal at a lower fee.

If the appraisal doesn't show enough of an increase in value to warrant the removal of PMI (Private Mortgage Insurance), can I get a refund on the appraisal fee?
No. Even if the appraisal does not show enough increase in value to warrant the removal of the PMI, the appraiser must still be paid for the inspection of the property, research and the preparation of the report. To minimize the occurrence of this happening, MBS offers an AVM (Automated Valuation Model) for $35 that will generate a data driven report that will give you an indication of your property value range based upon comparable sales. While the AVM is not accepted by Lender's as a product for determining sufficient value to release your PMI it provides an inexpensive indication of whether or not it is worth investing to upgrade to a full appraisal. MBS will give you a $10 credit should you elect to upgrade to the full appraisal.

How do I know that the appraiser is qualified?
MBS pre-qualifies each of our independent appraisers prior to acceptance into our network, assuring that they meet and maintain all qualifications of the states in which they are licensed and certified to appraise properties, and that they are in good standing with their respective governing boards. We retain copies of their current licenses on file.

Can I choose my own appraiser?
By selecting MBS, our database contains all the information required to select the most qualified appraiser in your area, which will save you the time and expense of searching for and qualifying appraisers whom would meet all the criteria required by your Lender.

How is the appraiser chosen?
MBS's database of state certified licensed appraisers doing business in your county, takes into consideration the following selection criteria: performance, product type, turnaround time, current work in progress, and fees.

How long does it take to get an appraisal completed?
MBS contacts the selected appraiser within the same business day that we receive your order. The appraiser is required to contact you, the borrower, within 24 hours of receiving the order to schedule a mutually agreeable date and time to inspect your home. Once the appraiser has inspected your home, it generally takes 5 to 10 business days for the appraiser to complete and submit the entire report to you and/or your Lender.

What are my advantages of utilizing MB Servicing, Inc.?
By selecting MB Servicing, Inc., you, the borrower, and the Lender benefit in the following ways: MBS provides an arm's length transaction through an independent third party, protecting both the borrower and the Lender from any perception of collusion; Our experienced PMI Servicing Team interfaces with the borrower to address and resolve any appraisal questions or issues which may arise due to your specific circumstances and, will save you the time and expense of searching for, and qualifying appraisers whom would meet all the criteria required by your Lender.

How do I pay MB Servicing for my appraisal?
MB Servicing accepts credit cards (Mastercard, Visa) or your personal check

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