Finance
In South Carolina, what is 'private mortgage insurance' (PMI) cancellation?
APMI can never be cancelled once started
BPMI must be cancelled by the lender when the LTV reaches 78% of the original purchase price (per Homeowners Protection Act)✓ Correct
CPMI cancels after 5 years automatically
DOnly the borrower can cancel PMI at any time
Explanation
The Homeowners Protection Act (PMI Cancellation Act) requires lenders to automatically cancel PMI when the LTV drops to 78% of the original purchase price (based on scheduled amortization). Borrowers may request cancellation at 80% LTV.
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