5. MJ purchased a house for $820,000 that is currently worth $740,000. The original loan balance was $630,000, the current loan balance is $598,000, and MJ is current on the mortgage payments. If the loan has PMI, it would protect the lender for losses up to 25% of the original loan amount

a. Is PMI currently in place (answer yes, no, or maybe)? Write your answer in the box.

b. Why did you answer part a as you did? Write your answer in the box.

c. If your answer to part a is maybe, then write maybe as your answer to part c. If your answer to part a is no or yes, then what would the lenders loss be if the house is sold today for $417,000? If your answer is not maybe, round it to the nearest dollar and write it in the box.