Homeowners Protection Act
Description: Homeowners Protection Act provides the purpose of PMI and explains when the right to cancel PMI is permitted. This course also explores scenarios that indicate when borrowers may request the cancellation of PMI and when servicers must automatically terminate PMI. It also covers the exceptions to cancellation and termination of PMI. This course explains each basic disclosure and notice requirement for borrower rights to cancel and terminate PMI, and the basic disclosure requirements for lender-paid mortgage insurance. It describes the liability to borrowers if PMI is not canceled in accordance with the law.
Audience: Lenders, underwriters and anyone who takes credit applications, as well as back office staff responsible for mortgage disclosures.
Learning Objectives: After completing this course, students will be able to:
- Describe when PMI is required and when it must be cancelled
- Explain borrower and servicer initiated requests for PMI cancellation and exceptions
- Describe lender disclosure and notice requirements for borrower rights to cancel and terminate PMI
- Explain the difference between Borrower paid mortgage insurance (BPMI) and Lender paid mortgage insurance (LPMI)