According to PMI regulations, when must final termination occur if it hasn't been canceled or automatically terminated?

The correct answer is based on the understanding of Private Mortgage Insurance (PMI) regulations, specifically regarding the final termination of PMI coverage. According to these regulations, if PMI has not been canceled by the borrower or automatically terminated based on equity levels, it must be terminated after the borrower has made 180 monthly payments. This rule is designed to protect borrowers from paying PMI indefinitely, ensuring that they are not burdened with extra costs once they have built sufficient equity in their home.

Understanding this timeframe is essential for both compliance and consumer awareness, as it helps borrowers know their rights and the timeline regarding PMI termination. The correct answer reflects the regulatory requirement that safeguards consumers in the mortgage process.