Homeowner's Protection Act

The Homeowner's Protection Act (HPA), enacted in 1998, requires lenders to automatically cancel private mortgage insurance (PMI) once the homeowner’s equity in the property reaches 22% of the original loan amount, assuming the borrower is current on payments. The law also grants homeowners the right to request cancellation of PMI earlier once they believe their equity has reached that level. The goal of the HPA is to help homeowners reduce unnecessary mortgage costs once they have sufficient equity in their home, making homeownership more affordable over time.