We made a substantial principal reduction (~80% of original loan) as part of a recast on an adjustable rate mortgage. I was unaware that I'd have to request PMI removal. That does seem to be pretty clearly true if this was a fixed rate mortgage (what was said here). However, for adjustable rate mortgages, the law uses the wording "Amortization schedule then in effect" (sections 4902.b.2, 4901.18.b, and 4901.6). My understanding is a recast results in a new amortization schedule that should have clearly had me under 78% of original value and my interpretation of the law is PMI should have automatically terminated essentially immediately. The mortgage servicer is just repeatedly telling me that I have to request cancellation and pay for appraisal.
Am I misreading the law?
