Finance
Under the Homeowners Protection Act, a lender must automatically cancel PMI on a conventional mortgage when the loan balance reaches what percentage of the original property value?
A80%
B78%✓ Correct
C75%
D70%
Explanation
The Homeowners Protection Act requires automatic PMI cancellation when the mortgage balance falls to 78% of the original property value (based on the original amortization schedule), even without a borrower request.
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