What is the Homeowner’s Protection Act?

The Homeowner’s Protection Act (HOPA) is a federal law in the United States that applies to the state of Georgia. It was created to protect homeowners from certain types of predatory lending practices. HOPA requires lenders to provide homeowners with information about their mortgage loan, including the cost of mortgage insurance, and give them the opportunity to cancel the insurance once the loan-to-value ratio reaches 80 percent. The law also requires lenders to provide homeowners with an annual disclosure statement that includes the amount of the mortgage, the loan balance, the current mortgage insurance premium cost, and other helpful information. Additionally, HOPA caps the amount of insurance that lenders can require for a loan, and it prevents lenders from collecting fees for canceling mortgage insurance. It also makes it easier for homeowners to qualify for a loan modification or refinancing by providing additional protections. HOPA was introduced in 2008 and has allowed many homeowners to avoid foreclosure or to refinance their loans. It is a valuable tool for protecting Georgia homeowners from potentially predatory lending practices and ensuring they are given the opportunity to make informed financial decisions.

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What is the Homeowner’s Protection Act?

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