Homeowners Protection Act (HOPA),
Definition of Homeowners Protection Act (HOPA):
The law was passed in 1998 in response to abuse by several private mortgage insurance (PMI) issuers. In cases where buyers want to borrow more than 80% of the value of the property, they usually need to buy private mortgage insurance to reduce the risk of default and corruption by the lender. However, it is not necessary to take out insurance once the purchase price is less than 5% of the purchase price. However, some PMI companies continue to collect and pay. According to Hopa, the PMI issuer must notify the issuer of his withdrawal rights beyond the value of 80 and will automatically terminate the insurance when only 78% remains. This law only applies to houses acquired after July 29, 1999.
Meaning of Homeowners Protection Act (HOPA) & Homeowners Protection Act (HOPA) Definition