A loan team is about to close a file involving pmi options and RESPA — Escrow Requirements. Which action should occur first?
Correct Answer
A) Apply HPA cancellation only to covered PMI
PMI options affect borrower cost and depend on loan type, LTV, and mortgage-insurance rules. This item uses an exam-style scenario; any file details in the stem are illustrative and the governing rule controls the compliant response. The best answer is "Apply HPA cancellation only to covered PMI".
Why This Is the Correct Answer
PMI options affect borrower cost and depend on loan type, LTV, and mortgage-insurance rules. This item uses an exam-style scenario; any file details in the stem are illustrative and the governing rule controls the compliant response. The best answer is "Apply HPA cancellation only to covered PMI".
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