Why are the mortgage insurance options disabled?

PMI or Mortgage Insurance is only available when an escrow account is established and required.

The PMI Applies and USDA Mortgage Insurance Applies options are disabled, on the Calculations page, when one of the following options are selected as the Escrow Account Type:

• Consumer waived the optional escrow account: An escrow (impound) account is not required in connection with the transaction. The borrower will manage the payment of taxes and insurance outside of an escrow (impound) account. Choosing this option will select ‘you declined it’ in the Escrow Account section on page 4 of the Closing Disclosure describing why an escrow account was not established. Property costs can be entered only as Waived in the Property Costs table. When selected, the options in the Mortgage Insurance section directly above the Property Costs section will be disabled because the inclusion of mortgage insurance requires an escrow account.
• Escrow account established and optional: An escrow (impound) account is not required in connection with the transaction and an account will be established for the payment of such items as taxes and insurance. Property costs can be entered as Escrowed, Non-Escrowed, or Waived in the Property Costs table. When selected, the options in the Mortgage Insurance section directly above the Property Costs section will be disabled because the inclusion of mortgage insurance requires an escrow account.
• Escrow not applicable: An escrow (impound) account is not applicable for the transaction. Choosing this option will select ‘your lender does not require of offer one’ in the Escrow Account section on page 4 of the Closing Disclosure describing why an escrow account was not established. Property costs can be entered only as Non-Escrowed in the Property Costs table. When selected, the Mortgage Insurance section directly above the Property Costs section is not available since the inclusion of mortgage insurance requires an escrow account.