Which type of mortgage loan is NOT covered by the Homeowners Protection Act's PMI cancellation provisions?
Correct Answer
B) FHA loans with mortgage insurance premiums
The Homeowners Protection Act applies to conventional loans with private mortgage insurance, not government-backed loans like FHA, VA, or USDA loans, which have their own mortgage insurance rules.
Why This Is the Correct Answer
The Homeowners Protection Act applies to conventional loans with private mortgage insurance, not government-backed loans like FHA, VA, or USDA loans, which have their own mortgage insurance rules.
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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