A compliance review finds that the loan schedule reaches the automatic PMI termination point. What should the MLO do next?
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".
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