Which of the following conditions must be met for a borrower to successfully request PMI cancellation at 80% LTV under the Homeowners Protection Act?
Correct Answer
B) The borrower must be current on mortgage payments with no 30-day late payments in the last 12 months
For PMI cancellation at 80% LTV, the borrower must be current on payments and have a good payment history. Specifically, no payments 30 days or more late in the preceding 12 months (or 24 months for certain high-risk loans).
Why This Is the Correct Answer
For PMI cancellation at 80% LTV, the borrower must be current on payments and have a good payment history. Specifically, no payments 30 days or more late in the preceding 12 months (or 24 months for certain high-risk loans).
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