What is the Homeowner’s Protection Act?

The Homeowner’s Protection Act is a federal law that was passed in Hawaii in 1998. The purpose of the law is to protect homeowners in Hawaii from abusive lending practices. The law requires lenders to provide homeowners with more information about the terms of their mortgage before they sign on the dotted line. The act requires lenders to notify potential borrowers of their right to purchase private mortgage insurance (PMI). It also requires lenders to allow borrowers to cancel PMI when the loan balance is 80% or less of the value of the home. Additionally, lenders must act upon requests to cancel PMI within a certain period of time after the request is made. The Homeowner’s Protection Act also requires lenders to provide borrowers with annual escrow account statements that show the amount of money that is being collected for taxes and insurance. This allows borrowers to track their escrow accounts better and avoid unexpected discrepancies that could cost them more money. The Homeowner’s Protection Act has helped borrowers in Hawaii avoid costly surprises and better manage their mortgage payments. It has also allowed lenders to offer more competitive terms, resulting in more affordable mortgages for borrowers in Hawaii.

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What is the Homeowner’s Protection Act?

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