A borrower with a conventional loan made a 10% down payment. Three years later, they complete a major home renovation that increases the property value by 25%. Can they immediately request PMI cancellation based on the increased property value?
Correct Answer
D) Yes, if an appraisal confirms the increased value
Under the HPA, borrowers can request PMI cancellation based on property value increases from home improvements at any time, provided they can demonstrate the increased value through an acceptable appraisal or broker price opinion. Unlike appreciation-based requests, there is no waiting period for improvement-based value increases.
Why This Is the Correct Answer
Under the HPA, borrowers can request PMI cancellation based on property value increases from home improvements at any time, provided they can demonstrate the increased value through an acceptable appraisal or broker price opinion. Unlike appreciation-based requests, there is no waiting period for improvement-based value increases.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which information is NOT required to be included in an AfBA disclosure?
A lender quotes an APR of 4.25% on a mortgage loan, but the actual APR calculation results in 4.28%. Under TILA's APR accuracy tolerance, is this disclosure compliant?
Which of the following fees would NOT be included in the finance charge calculation under TILA?
For a purchase money mortgage with a loan amount of $400,000, which of the following represents the correct method for calculating the APR?
A servicer receives a borrower's written request for payoff information on Monday. The borrower needs the information for a refinance closing scheduled for the following Friday. When must the servicer provide an accurate payoff statement?
A lender provides a borrower with initial TILA disclosures showing an APR of 4.5%. Due to market changes, the final APR at closing is 4.625%. What disclosure requirement applies?
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A lender discovers that the APR disclosed on the Closing Disclosure is 0.20 percentage points higher than the actual APR. What action is required under TILA?
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