Before closing, the team discovers that the loan schedule reaches the automatic PMI termination point. What is the safest compliant answer?
Correct Answer
B) Automatically terminate PMI at 78 percent if current
Lines 76-85; CFPB PMI cancellation page, automatic termination section. Automatic termination at 78 percent is generally required if the borrower is current. Therefore, the correct response is "Automatically terminate PMI at 78 percent if current".
Why This Is the Correct Answer
Lines 76-85; CFPB PMI cancellation page, automatic termination section. Automatic termination at 78 percent is generally required if the borrower is current. Therefore, the correct response is "Automatically terminate PMI at 78 percent if current".
More Federal Laws Questions
During intake, a borrower sends a written request for information to the servicer-designated address. What is the best compliant response?
Parker is training a new MLO on Fair Housing Act compliance Act compliance. Which statement is accurate?
Hayden is training a new MLO on Homeowners Protection Act PMI rules. Which statement is accurate?
Lane receives conflicting instructions about TRID Loan Estimate timing timing. Which instruction should control?
A branch manager asks about a loan file because a compliance analyst asks why covered mortgage application data is collected. What should happen?
Before closing, the team discovers that a compliance analyst asks why covered mortgage application data is collected. What is the safest compliant answer?
During intake, the loan schedule reaches the automatic PMI termination point. What is the best compliant response?
A renewal specialist is reviewing a mortgage file during a disciplinary-risk review. Which statement correctly handles GLBA privacy requirements?
Indigo receives conflicting instructions about BSA / AML Requirements. Which instruction should control?
Before the loan advances, a sponsorship reviewer must resolve a TILA advertising issue in an MLO sponsorship update. What should happen?
People Also Study
General Mortgage Knowledge
20% of exam
Mortgage Loan Origination Activities
27% of exam
Ethics, Fraud & Consumer Protection
18% of exam
Uniform State Test Content
11% of exam
Related Study Resources
Previous Question
A mortgage team asks a branch supervisor about RESPA servicing and affiliated-business rules during a branch onboarding review. Which answer should guide the file?
Next Question
Before the loan advances, a branch supervisor must resolve a HOEPA high-cost mortgage rules issue in a training scenario. What should happen?