Detailed Answer
The correct answer is (A). HPA regulates
private mortgage insurance. In addition to
choice (A), a residential mortgage transaction according to HPA is one that generates a
mortgage or deed of trust and whose purpose
is to finance the acquisition, construction,
or refinancing of the borrower’s primary
residence. Choice (B) is a dwelling that is
covered under the Fair Housing Act, but not
under HPA. Choice (C) is incorrect because
VA-guaranteed and FHA-insured mortgages
are not covered under HPA. Choice (D) is
incorrect because HPA regulates residential
mortgages that are ARMs also.