Effective July 29, 1999, the Homeowners Protection Act (HPA or Act) requires that private mortgage insurance be cancelled when a loan reaches certain, specified thresholds. The Act’s MI cancellation policy applies to privately insured first mortgages:
- on single-family, primary residences, AND
- closed on or after July 29, 1999, AND
- for the purpose of financing the acquisition, initial construction or refinancing of the dwelling.
Following the HPA’s lead, Fannie Mae and Freddie Mac have updated their own MI cancellation policies, in accordance with the Act, for privately insured first mortgages.
For more information, please check out the informative free downloads here:
- Private Mortgage Insurance Cancellation: Your guide to Cancelling MI in accordance with the Homeowners Protection Act of 1998
- When and How to Cancel Mortgage Insurance