What is the Homeowner’s Protection Act?

The Homeowner’s Protection Act (HOPA) is a law passed in Delaware that provides certain protections to homeowners who have private mortgage loans. This law was enacted in order to protect Delaware homeowners from predatory lending and other unfair practices that were occurring. It also ensures that private mortgage lenders use reasonable and responsible loan terms when they offer loans to eligible homeowners. The law requires private mortgage lenders to provide homeowners with disclosure statements about their loan terms, fees, interest rates, and other applicable loan details. It also requires lenders to provide an escrow account for taxes and insurance payments. Additionally, the law limits lenders to charging only certain fees when refinancing a loan, such as closing costs, and it limits the amount of prepayment penalties that may be applied. Finally, the law requires private mortgage lenders to provide homeowners with a notice that informs them of their right to cancel the loan without penalty within three days of the loan closing. This notice also informs homeowners of their right to choose a different closing agent for the loan if they wish. The protections provided by the Homeowner’s Protection Act are valuable for Delaware homeowners, as they can ensure that their loans are not subjected to predatory practices and that their loan terms are fair and reasonable.

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What is the Homeowner’s Protection Act?

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