Homeowners Protection Act

Question 1

What is excluded from coverage under HPA?

Answer 1

HPA does not cover loans the do not have PMI or loans secured by second or multi-family homes
VA and FHA loans excluded
Loans with lender-paid PMI

Question 2

Borrower’s right to cancel PMI when mortgage has been paid down to what percent of original appraised value or purchase price

Answer 2

80%, therefore giving the borrower 20% equity

Question 3

HPA disclosures must include what?

Answer 3

Borrower’s Right to Cancellation
Automatic Termination
Right to Prepayment (to accelerate cancellation date of PMI)