What information must lenders provide to borrowers about PMI at loan closing according to the HPA?
Correct Answer
B) Written disclosure of borrower's right to cancel PMI and automatic termination requirements
The HPA requires lenders to provide borrowers with written disclosure at closing that explains the borrower's rights regarding PMI cancellation and the conditions under which PMI will automatically terminate.
Why This Is the Correct Answer
The HPA requires lenders to provide borrowers with written disclosure at closing that explains the borrower's rights regarding PMI cancellation and the conditions under which PMI will automatically terminate.
More Origination Questions
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Under the Appraiser Independence Requirements (AIR), which party is prohibited from selecting the appraiser for a federally related transaction?
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A borrower receives pre-approval for a conventional loan but decides to apply for an FHA loan instead. The MLO discovers the borrower has a bankruptcy from 18 months ago that meets FHA guidelines but not conventional guidelines. What should the MLO do?