What is the Homeowner’s Protection Act?

The Homeowner’s Protection Act is a law that is in place to protect homeowners from certain risks associated with private mortgage insurance. This law was established in North Carolina in 1999 and it applies to private mortgage insurance, also known as PMI. Private mortgage insurance is an insurance policy that lenders often require when a homeowner has a down payment of less than 20% of the total value of the home. The Homeowner’s Protection Act is designed to protect homeowners from the risks that they may face with private mortgage insurance. The law requires that lenders provide borrowers with certain notifications when they become subject to PMI. The law also has provisions protecting borrowers from having to pay PMI for longer than necessary. If a borrower makes payments on time and the loan balance is less than 78% of the original principal balance, the lender must stop collecting PMI payments. The law also provides options for borrowers to obtain a refund of any PMI payments made after the loan balance reaches 78%. The Homeowner’s Protection Act is a law that is in place to help protect homeowners in North Carolina from unnecessary risks associated with private mortgage insurance. This law requires lenders to provide borrowers with certain notifications and it also restricts the amount of time that a borrower can be required to pay PMI. By understanding the provisions of the Homeowner’s Protection Act, North Carolina homeowners can make informed decisions about their mortgage loan.

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What is the Homeowner’s Protection Act?

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