A borrower with a high-risk loan made their first payment on March 15, 2022. The loan has an original amortization schedule of 25 years. When is the earliest date the borrower can request PMI cancellation under the HPA?
Correct Answer
C) The borrower cannot request cancellation on a high-risk loan
Under the Homeowners Protection Act, borrowers with high-risk loans cannot request PMI cancellation. High-risk loans are exempt from the borrower-requested cancellation provisions, though automatic termination may still apply at the midpoint of the loan term.
Why This Is the Correct Answer
Under the Homeowners Protection Act, borrowers with high-risk loans cannot request PMI cancellation. High-risk loans are exempt from the borrower-requested cancellation provisions, though automatic termination may still apply at the midpoint of the loan term.
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