The case, Steve Kovachevich v. National Mortgage Insurance Corporation, centered on whether a homeowner who had prepaid his mortgage insurance was entitled to a partial refund after the coverage was voluntarily canceled by his mortgage servicer. Kovachevich bought a home in Virginia in 2020 and, because he made a down payment of less than 20 percent, was required to purchase private mortgage insurance, or PMI. A year later, he asked for the insurance to be canceled. His servicer, LoanCare, initially said no, citing that he hadn’t paid down enough of his loan under the federal benchmarks. But it then agreed to cancel the coverage anyway—outside the standard rules—if Kovachevich met certain conditions.
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