Finance
In Kansas, what is 'PMI cancellation' under the Homeowners Protection Act?
AThe lender can cancel PMI at any time without notice
BBorrowers may request PMI cancellation when equity reaches 20%, and PMI automatically terminates at 22% equity✓ Correct
CPMI can only be cancelled by refinancing the loan
DOnly FHA loans are subject to PMI cancellation rules
Explanation
The Homeowners Protection Act requires lenders to cancel PMI automatically when the loan balance reaches 78% LTV (22% equity), and allows borrowers to request cancellation at 80% LTV (20% equity).
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