Homeowners Protection Act
Course Number: ABA
Course Code: ABA
Explains when the right to cancel PMI is permitted, the exceptions, disclosures, and notice requirement for borrower rights to cancel and terminate PMI, the basic disclosure requirements for lender-paid mortgage insurance, and the liability to borrowers if PMI is not canceled in accordance with the law.
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)
Audience: enders, underwriters and anyone who takes credit applications, as well as back office staff responsible for mortgage disclosures.