Finance
Under the Homeowners Protection Act, a borrower with an 80% LTV can request cancellation of PMI when:
AThey have paid the loan for 5 years
BThe mortgage balance reaches 80% of the original value (or current appraised value)✓ Correct
CThey refinance the mortgage
DThe loan is sold to Fannie Mae
Explanation
The Homeowners Protection Act (PMI Cancellation Act) allows borrowers to request PMI cancellation when the loan balance reaches 80% of the original property value, and mandates automatic cancellation at 78%.
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