Definition of Homeowners Protection Act
Homeowners Protection Act is a law intended to reduce the unnecessary installment of private mortgage insurance (PMI) by property holders who are no longer required to pay it. It orders that banks unveil certain data about PMI. The law also stipulates that PMI must consequently end for homeowners who aggregate the required measure of value in their homes.
It covers private home loans bought after July 29, 1999. It does not affect Veterans Affairs (VA) loans or FHA loans and imposes another set of requirements for “high-hazard” contracts. This law additionally initiates new necessities for loans obtained before July 29, 1999.