HPA

Question 1

What does HPA mean?

Answer 1

Homeowners Protection Act

Question 2

Purpose of HPA?

Answer 2

• Prohibits life-of-loan PMI coverage for borrower-paid PMI products
• Establishes uniform procedures for the cancellation and termination of PMI policies

Question 3

Scope of HPA?

Answer 3

Applies to any transaction involving a federally-related mortgage loan

Question 4

Notice of Right to Cancel PMI

Answer 4

Required by: HPA

Due:
* at closing
* in annual disclosures

• Must be in writing and must remind the borrower of the right to cancel PMI
• Must also provide an address and phone number that the borrower can use to contact his or her loan servicer to request information about the cancellation of PMI