Finance
Michigan's Homeowner's Protection Act (HPA) requires automatic cancellation of PMI when the homeowner's equity reaches:
A10% of the original loan amount
B22% equity based on original property value (78% LTV)✓ Correct
C20% equity based on current appraised value
D15% equity after 5 years of payments
Explanation
The federal Homeowners Protection Act requires automatic cancellation of PMI when the loan balance reaches 78% LTV based on the original purchase price (22% equity), provided the borrower is current on payments.
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