Drake purchased a house for $720,000 that is currently worth $720,000. The original loan balance was $600,000, the current loan balance is $568,000, and Drake is current on his 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)

b. Why did you answer part a as you did?

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 lender's loss be if the house is sold today for $417,000?

R1