Finance
Under the Homeowners Protection Act (1998), PMI on a conventional mortgage must be automatically terminated when the LTV reaches:
A80% based on original value
B78% based on the original amortization schedule and original value✓ Correct
C75% based on current appraised value
D70% regardless of any circumstances
Explanation
The Homeowners Protection Act requires automatic PMI cancellation when the LTV reaches 78% of the original value based on the scheduled amortization, regardless of whether the borrower requests it. Borrowers can request cancellation at 80% LTV.
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