Under the Homeowners Protection Act, a borrower may request PMI cancellation when the loan-to-value ratio reaches what percentage?
Correct Answer
C) 80%
Borrowers have the right to request PMI cancellation when the LTV reaches 80% of the original property value, provided they meet certain conditions including being current on payments.
Why This Is the Correct Answer
Borrowers have the right to request PMI cancellation when the LTV reaches 80% of the original property value, provided they meet certain conditions including being current on payments.
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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