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Certain PMI Requirements Waived for State-Chartered CUs

California Department of Financial Protection and Innovation (DFPI) Commissioner Clothilde Hewlett has issued an order to waive certain private mortgage insurance (PMI) requirements outlined in Title 10, Chapter 1, Subchapter 30 of the California Code of Regulations (CCR):

  • Effective Date — The order became effective June 22, 2023.
  • Applicability — This waiver specifically applies to California state-chartered credit unions.
  • Background — As per 10 CCR §30.802(a)(1)(B), PMI is generally required for loan amounts exceeding 80 percent of the appraised value of real property collateral. It also imposes limitations on the loan term, allowing 40 years for a first lien and 30 years for a junior lien on residential mortgage loans granted by California state-chartered credit unions.
  • California DFPI’s PMI Waiver — Under the order, mortgages granted by California state-chartered credit unions are no longer subject to the PMI requirement. This waiver will remain in effect until further notice and does not affect any other provisions outlined in 10 CCR §30.802.
  • Impact on California State-Chartered Credit Unions — This waiver provides state-chartered credit unions parity with California state-chartered banks and federal credit unions. It also enables them to explore innovative and effective strategies to increase the availability of affordable housing options in California, including the construction of accessory dwelling units (ADUs).

State-chartered credit unions should consult their legal counsel. Additionally, for compliance assistance, contact the California and Nevada Credit Union Leagues help-line powered by ViClarity at 844.731.6072 or

Also, reach out to your credit union’s DFPI portfolio manager for additional questions.

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