HPA Flashcards
1
Q
What is the purpose of the Homeowner’s Protection Act (HPA)?
A
This is all about Private Mortgage Insurance (PMI) NOT MIP. It requires lenders or servicers to provide disclosures considering PMI on residential mortgage transactions
2
Q
Is PMI conventional or governmental?
A
PMI is on conventional loans not government
3
Q
When is PMI required?
A
PMI is required when they put less than 20% downpayment.
4
Q
Who does PMI protect?
A
PMI protects or covers the lender not the borrower
5
Q
When can a borrower request PMI cancellation?
A
Borrower may request PMI cancellation at 80% LTV
6
Q
What is PMI automatically cancelled?
A
PMI is automatically cancelled at 78% LTV if the borrower is current
