Finance
Under the Homeowners Protection Act (HPA), a Maine borrower with a conventional loan must be informed of their right to cancel PMI when:
AThey have made 12 monthly payments
BTheir loan balance reaches 80% LTV based on original value/purchase price✓ Correct
CTheir home has appreciated 25%
DThey have refinanced once
Explanation
The HPA requires lenders to automatically cancel PMI when the loan balance reaches 78% LTV (based on original amortization schedule), and borrowers can request cancellation when the balance reaches 80% LTV.
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