The Homeowners Protection Act gives you the right to cancel private mortgage insurance (PMI) when you reach 80% LTV. Learn PMI cancellation rights, FHA MIP rules, and how improper mortgage insurance charges create foreclosure defenses.
Get Free Case ReviewThe Homeowners Protection Act (HPA) of 1998 requires automatic PMI termination when the loan reaches 78% of original value (based on amortization schedule), and allows borrower-initiated cancellation at 80% LTV. Servicers must provide annual PMI disclosure statements. Common violations: continuing PMI beyond the automatic termination date, denying cancellation despite 80% LTV, requiring an appraisal when the value is clear, and failing to send required annual notices. For FHA loans, MIP (Mortgage Insurance Premium) rules differ — MIP is required for the life of most FHA loans originated after 2013. PMI/MIP overcharges inflate the loan balance and create disputes over the amount owed in foreclosure. File a written notice of error under Reg X to force the servicer to address the PMI issue. See: RESPA Guide.
HPA violations are actionable. We demand PMI cancellation and refunds of overcharges.
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