Congress passed the Homeowners Protection Act (HPA) in 1998 to facilitate the cancellation of private mortgage insurance (PMI). Lenders may require borrowers to purchase PMI when they make down payments of less than 20%, and the loan-to-value ratio (LTV) is high. PMI helps consumers by enabling them to secure a loan when they have little cash for a down payment. It also helps lenders to protect their interests while making these riskier loans, and to recover costs associated with the resale of foreclosed property. This professional development online course provides a review of the provisions of the Homeowners Protection Act, including definitions associated with the Act, identification of entities covered by its provisions, disclosure requirements, guidelines for compliance with the HPA, and penalties for violations.