Question

Under the Homeowners Protection Act, borrowers can request that lenders cancel PMI when their loan balance is less than____, or a lender may collect PMI until____, loan-to-value is reached.

a: 80%; 65%
b: 78%; 62%
c: 80%; 78%
d: 65% ; 50%

Answer 1

Under the Homeowners Protection Act, borrowers can request that lenders cancel PMI when their loan balance is less than 78%, or a lender may collect PMI until 80% loan-to-value is reached.

Step-by-step explanation:

The Homeowners Protection Act (HPA) is a United States federal law that was enacted in 1998. The full name of the law is the Homeowners Protection Act of 1998, and it is also commonly referred to as the Private Mortgage Insurance (PMI) Cancellation Act. The purpose of the Homeowners Protection Act is to provide certain rights to homeowners with mortgages that require private mortgage insurance (PMI). Under the Homeowners Protection Act, borrowers can request that lenders cancel PMI when their loan balance is less than 78%, or a lender may collect PMI until 80%, loan-to-value is reached.