HPA

Question 1

What is the Homeowner’s Protection Act?

Answer 1

The Homeowners Protection Act (HPA) of 1998 is designed to protect people who buy primary residences using Private Mortgage Insurance (PMI). PMI is generally required for conventional loans that have less than a 20 percent down payment. The law does not apply to FHA loans and Mortgage Insurance Premiums (MIP).

Question 2

Under the Homeowners Protection Act of 1998, when can the borrower request their PMI to be canceled? When must it be canceled automatically?

Answer 2

When the LTV reaches 80%.

When the LTV reaches 78%.