A borrower with a high-risk loan wants to request PMI cancellation. Under the Homeowners Protection Act, what payment history requirement must they meet?
Correct Answer
C) No payments 30 days or more late in the preceding 24 months
For high-risk loans, borrowers must have no payments that are 30 days or more late in the preceding 24 months to be eligible for PMI cancellation, compared to 12 months for standard loans.
Why This Is the Correct Answer
For high-risk loans, borrowers must have no payments that are 30 days or more late in the preceding 24 months to be eligible for PMI cancellation, compared to 12 months for standard loans.
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?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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Previous Question
A borrower applies for a $350,000 mortgage with a 43% debt-to-income ratio, a 20% down payment, and no risky features. The loan meets all General QM requirements except the loan amount. What is the status of this loan?
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A borrower pays the loan application fee with multiple money orders, each just under $3,000, totaling $8,500. The borrower states they 'don't trust banks' and prefer money orders. This scenario primarily raises concerns about: