What must servicers include in their PMI cancellation notification?

Servicers are required to include information about the borrower's rights regarding Private Mortgage Insurance (PMI) cancellation in their notification. This is critical because it ensures that borrowers are fully informed about the process, criteria, and any conditions under which they may request the cancellation of their PMI. Including this information empowers borrowers to take necessary actions, such as confirming if their home has reached the appropriate equity level or if other conditions for cancellation have been met.

Understanding the borrower's rights helps to facilitate clear communication and protects the borrower’s interests by outlining steps they can take to potentially eliminate an unnecessary financial burden—PMI payments—once they have accrued enough equity in their home. It is essential for servicers to communicate these rights effectively, as it supports compliance with federal regulations that govern the cancellation of PMI.