[SS Fed] Homeowners Protection Act

Course Description

Private mortgage insurance (PMI) protects the lender in the event that a borrower defaults on a loan, and it is required when a borrower makes a down payment of less than 20% and the loan-to-value ratio is high. Congress passed the Homeowners Protection Act (HPA) in 1998 to facilitate the cancellation of private mortgage insurance. The Homeowners Protection Act provides for the automatic termination of PMI as borrowers build equity, and the risk of loss from default decreases.

This course provides an overview of the HPA, including important definitions, required disclosures, and prohibited practices under the law.

20 Minutes