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Homeowners Protection Act HOPA

01-RA-04 / March 2001
Homeowners Protection Act HOPA
Mortgage Lending
All Federally-Insured Credit Unions
All Federally-Insured Credit Unions
Homeowners Protection Act HOPA

The Homeowner's Protection Act (HOPA), also known as the "PMI Cancellation Act,” was passed in 1998, addressing the difficulties homeowners have experienced in canceling private mortgage insurance (PMI). It established provisions for the cancellation and termination of PMI, established disclosure and notification requirements, and required the return of unearned premiums. Prior to HOPA, homeowners had little recourse when lenders refused to cancel PMI. HOPA protects homeowners by prohibiting life of loan PMI for borrower-paid products, and it establishes uniform procedures for cancellation of PMI policies.

HOPA took effect on July 29, 1999. On December 27, 2000, President Clinton signed into law the American Homeownership and Economic Opportunity Act of 2000. Title IV of that act provides technical corrections and clarification to HOPA. The technical amendments and the original Homeowners Protection Act of 1998 are enclosed.

We encourage management officials and residential mortgage lending staff to review the requirements of HOPA and evaluate the credit union’s policies and procedures for compliance.



Dennis Dollar

Acting Chairman

National Credit Union Administration Board


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