The Homeowners Protection Act (HPA) is also known as the PMI Cancellation Act, and was designed to reduce unnecessary payments of private mortgage insurance (PMI) when homeowners are no longer required to pay it. Before the Homeowners Protection Act, many homeowners unknowingly continued to pay PMI when their equity reached 20% and they were legally able to cancel it. Oftentimes, they weren't even aware they were paying it at all, since it was lumped into their monthly mortgage payments. In some instances, a lender would agree to terminate coverage when the borrower's equity reached 20%, but then neglected to do so. In this course, we'll discuss the basics of PMI and the methods for cancellation. We'll also go over the exceptions to cancellation of PMI, the disclosures that are required, and civil liability for violating the HPA.