What is Homeowner Protection Act?

The Homeowners Protection Act of 1998 became effective in July 1999. The act, also known as the PMI Cancellation Act, addresses the difficulties homeowners have experienced in canceling pri- vate mortgage insurance (PMI) coverage. PMI protects lenders from the risk of default and foreclosure.

Who enforces HPA?

The Dodd-Frank Act directs the CFPB to enforce Federal consumer financial laws and specifically enumerates HPA as one of those laws.

How long do you have to have mortgage insurance for?

If you’ve owned the home for at least five years, and your loan balance is no more than 80 percent of the new valuation, you can ask for PMI to be cancelled. If you’ve owned the home for at least two years, your remaining mortgage balance must be no greater than 75 percent.

Is PMI required by law?

Borrower paid mortgage insurance (BPMI) means PMI is required for a residential mortgage transaction, the payments for which are made by the borrower.

Is PMI removed automatically?

Your PMI is recalculated each year based on the current size of your loan balance, so the premium will decrease as you pay down the loan.

When must PMI be Cancelled?

PMI will automatically terminate when the loan balance is first scheduled to reach 78% of the original value of the mortgaged property regardless of the outstanding balance of the mortgage and the loan is current.

What does homeowners insurance protect against?

Homeowners insurance helps cover the costs if something unexpectedly damages or destroys your home,like a bad storm or burst pipe

Your insurance company will only accept a claim if the cause of property damage or loss is a peril covered by your policy

Examples of covered perils include fire,lightning,wind,hail,and theft

What is the emergency Tenants Protection Act?

to protect tenants from illegal rent increases. Outside New York City, rent stabilization is often referred to by the law that governs the system, the Emergency Tenant Protection Act (“ETPA”). In addition to regulating rent increases, the ETPA entitles rent stabilized tenants to receive required services, to have

What is hPa in mortgage?

Your request must be in writing.

You must have a good payment history and be current on your payments.

Your lender may require you to certify that there are no junior liens (such as a second mortgage) on your home.

How to remove private mortgage insurance (PMI)?

Make the PMI cancellation request to your lender or servicer in writing.

Be current on your mortgage payments,with a good payment history.

Meet other lender requirements,such as having no other liens on the home (i.e.,a second mortgage).

If required,you might need to get a home appraisal.