Finance
What is 'private mortgage insurance' (PMI) cancellation policy for conventional Kansas loans?
APMI is permanent and cannot be cancelled
BUnder HOPA, PMI must be automatically cancelled when the LTV reaches 78% of the original purchase price based on scheduled payments✓ Correct
CPMI cancels when the borrower requests it at any time
DPMI cancels after 5 years regardless of LTV
Explanation
The Homeowners Protection Act (HOPA) requires automatic PMI cancellation when the LTV ratio (based on original purchase price and scheduled payments) reaches 78%, and allows borrower-requested cancellation at 80% LTV.
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