What does Homeowners Protection Act mean?

It is a law which comes to protect homeowners against unnecessarily paying for Private Mortgage Insurance. As few years ago, cancellation or termination of PMI was something the homeowner had to ask for, the Homeowners Protection Act comes and actually forces lenders to bring into the open any information regarding PMI. This federal law simply states that individuals who saved the necessary equity in their home, no longer need to make payments towards PMI.

Homeowners Protection Act explained

Veteran Affairs or Federal Housing Administration (FHA) are subject to exclusion from under the umbrella of the Homeowners Protection Act. Moreover, it clearly applies its stipulations on private mortgages obtained after July 23, 1999, but it also has brought radical changes to private residential mortgages obtained before this date. New demands have been worked out for cases of high risk mortgages as well.