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Sec4-P131

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Question 1 of 5

1. Question

A borrower reviews their mortgage statement and notices the loan balance is approaching 80 percent of the original home value. The borrower contacts the servicer to ask how PMI can be removed.

A) PMI is removed automatically once requested
Correct Incorrect Correct answer

B) PMI may be cancelled when the loan reaches 80% of original value
Correct Incorrect Correct answer

C) PMI can only be removed through refinancing
Correct Incorrect Correct answer

D) PMI can be removed once the home increases in value
Correct Incorrect Correct answer

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Question 2 of 5

2. Question

A borrower cannot locate the PMI disclosure explaining when PMI may be cancelled.

A) PMI can never be cancelled without the disclosure
Correct Incorrect Correct answer

B) PMI is cancelled automatically after 10 years
Correct Incorrect Correct answer

C) The borrower may contact the servicer for PMI information
Correct Incorrect Correct answer

D) PMI can only be cancelled by refinancing
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Question 3 of 5

3. Question

A borrower makes extra principal payments and believes the loan balance is now below 80 percent of the original value.

A) PMI cannot be cancelled early
Correct Incorrect Correct answer

B) PMI may be cancelled if balance reaches 80 percent
Correct Incorrect Correct answer

C) PMI only ends at 78 percent
Correct Incorrect Correct answer

D) PMI requires refinancing
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Question 4 of 5

4. Question

A borrower asks how the original value of the home is determined for PMI cancellation.

A) Current market value
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B) Borrower estimate
Correct Incorrect Correct answer

C) Lower of purchase price or appraised value
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D) County tax value
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Question 5 of 5

5. Question

A borrower requests PMI cancellation but has had several late payments.

A) PMI must still be cancelled
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B) PMI requires good payment history
Correct Incorrect Correct answer

C) PMI depends only on value
Correct Incorrect Correct answer

D) PMI is cancelled automatically
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