Finance
A North Dakota buyer's PMI policy terminates automatically when:
AThe borrower requests it
BThe loan balance reaches 78% of the original purchase price (based on scheduled amortization under the Homeowners Protection Act)✓ Correct
CThe property appreciates 20%
DThe loan is 5 years old
Explanation
Under the Homeowners Protection Act (PMI cancellation law), PMI must automatically terminate when the loan balance reaches 78% of the original purchase price based on the scheduled amortization, assuming the borrower is current on payments.
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