Which act allows for the cancellation of PMI by request when the loan is paid down to 80% of the original value?

The Homeowners Protection Act (HPA) is designed specifically to address the issue of private mortgage insurance (PMI) and its cancellation. Under this act, homeowners have the right to request the cancellation of PMI once their mortgage balance reaches 80% of the original value of their home. This provision was enacted to protect consumers from the unnecessary expense of PMI, which is typically required when the down payment is less than 20% of the home's purchase price.

When a borrower pays their mortgage down to the requisite 80% threshold, they can initiate a request for PMI cancellation, provided they meet certain conditions regarding payment history and the type of loan. The HPA also stipulates that lenders must automatically terminate PMI when the loan balance reaches 78% of the original value, creating a safeguard for homeowners against excessive insurance costs.

The other acts listed do not specifically pertain to PMI cancellation; for instance, the Home Mortgage Disclosure Act primarily focuses on transparency and disclosure in mortgage lending, while the Home Ownership Equity Protection Act and Mortgage Assistance Relief Services concern predatory lending practices and assistance with foreclosure prevention, respectively.