Under the Homeowners Protection Act (HPA), when must a lender automatically terminate PMI?
Correct Answer
A) When the LTV reaches 78% based on the original property value
The Homeowners Protection Act requires lenders to automatically terminate PMI when the loan-to-value ratio reaches 78% of the original property value, provided the borrower is current on payments and meets other requirements.
Why This Is the Correct Answer
The Homeowners Protection Act requires lenders to automatically terminate PMI when the loan-to-value ratio reaches 78% of the original property value, provided the borrower is current on payments and meets other requirements.
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