Under the Homeowners Protection Act, when is a borrower entitled to automatic termination of PMI on a conventional loan?
Correct Answer
A) When the loan-to-value ratio reaches 78% based on the original property value
The Homeowners Protection Act requires automatic termination of PMI when the loan-to-value ratio reaches 78% of the original property value, provided the borrower is current on payments.
Why This Is the Correct Answer
The Homeowners Protection Act requires automatic termination of PMI when the loan-to-value ratio reaches 78% of the original property value, provided the borrower is current on payments.
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