Financing
Financing Practice Question
Under the Homeowners Protection Act, PMI must be automatically terminated when the loan-to-value ratio reaches:
A
80%B
78%C
75%D
70%Explanation
The Homeowners Protection Act requires automatic termination of PMI when LTV reaches 78% based on the original property value. Borrowers can request cancellation at 80% LTV. This applies to conventional loans originated after July 1999.
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