Federal Mortgage - Related Laws II question n answers graded A+

Federal Mortgage - Related Laws II question n answers graded A+ Homeowners Protection Act (HPA) - correct answer The act that requires Private Mortgage Insurance (PMI) removal. Allows borrowers to request that lenders cancel PMI when their loan balance reaches 80% of the value of the home that secures the mtg. When their equity in their home equals or exceeds 20%, based on the borrower's pmt history, the lender may honor the request or may continue to collect PMI until 78%. Good payment history (HPA) - correct answer If he/she did not make a mtg pmt that was 60 days or more past due during the 12-month period beginning 24 months before the date on which the mortgage reaches the cancellation date & didn't make a mtg pmt that was 30 days or longer past due during the 12 month period preceding the date on which the mortgage reaches the cancellation date. 80% termination will not apply. Termination date - correct answer the date that the principal balance is scheduled to reach 78% of the original value of the home. high-risk loans - correct answer The borrower-requested cancellation of PMI at 80% and automatic Termination of PMI at 78% do NOT apply to high-risk loans However High-Risk loans are subject to final termination and are divided into two categories: 1.Conforming 2. Nonconforming Final termination - correct answer Occurs when the loan does not qualify for earlier cancellation or termination. Takes place the 1st day of the month after the mid-point of the loan's amortization period, provided the borrower is current o the pmts.