For a high-risk loan under the HPA, when is the final termination date for PMI?
Correct Answer
B) At the midpoint of the loan amortization period
For high-risk loans (typically those with LTV ratios above 90% at origination), the HPA requires PMI termination at the midpoint of the loan amortization period, regardless of the current LTV ratio.
Why This Is the Correct Answer
For high-risk loans (typically those with LTV ratios above 90% at origination), the HPA requires PMI termination at the midpoint of the loan amortization period, regardless of the current LTV ratio.
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A borrower's bank statement shows monthly service fees of $25 and overdraft fees totaling $150 over two months. How should the MLO address this in the loan evaluation?
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For a construction-to-permanent loan, when must the initial Closing Disclosure be provided for the construction phase?