Insurance: Mortgage, Flood, Hazard Flashcards
1
Q
What are the two types of mortgage insurance?
A
- PMI- Private Mortgage Insurance for a conventional loan above 80% LTV.
- FHA’s Mortgage Insurance premium Insurance policy
2
Q
The HPA (Homeowners Protection Act) requires automatic discontinuation of PMI when the LTV ratio hits what Percentage?
A
78% LTV
3
Q
Hazard insurance is also called what?
A
Homeowners Insurance
4
Q
A “loss payee clause”, or lien holder clause, is included in hazard insurance policies in order to protect who?
A
The lender
5
Q
Homeowners who are required to carry flood insurance can obtain it through what program?
A
FEMA - Federal Emergency Management Agency’s “National Flood Insurance Program”
6
Q
Who has the responsibility to determine the flood zone designation for a properties location?
A
The Appraiser
7
Q
Flood insurance is not required to be purchased in which zones?
A
Zones D, B, C, X
