My loan with Bank of America has reached 78 % of LTV ( my equity is 22 % ). They are refusing to Automatically cancel my PMI. According to HUD documentation ( XXXX ), " The law provides XXXX situations in which borrower paid PMI may be cancel - it can be automatic or by request. Lender-paid PMI is excluded from these mandates, but requires an up front disclosure to the borrower about lender-paid PMI. 
The XXXX cancellation situations are : Automatic. In general, when the homeowner 's equity position reaches 22 percent of the original value of the property, the mortgage servicer must automatically cancel the PMI. The borrower must be current in making payments for automatic cancellation to apply. " According to CFPB documentation ( XXXX ) " Automatic PMI termination Even if you do n't ask your lender to cancel PMI, your lender still must terminate PMI on the date when your principal balance is scheduled to reach 78 percent of the original value of your home. You also need to be current on your payments on the anticipated cancellation date. Otherwise, PMI will not be terminated until shortly after your payments are brought up to date. 

It 's worth noting a termination request is different than a cancellation request. Your lender must terminate PMI even if the principal balance of your loan has not actually reached 78 percent of the original value of your home - for example, because the value of your home declined. '' I have never been late on a payment, and have always paid extra principle. My loan is over 5 years old. 
The lender is basing their denial on the " scheduled '' date when I reach 78 %, which would not have been until XX/XX/2017, but since I always pay extra principle, that date has arrived sooner. 
