Which act determines that a borrower must have no 60-day late payments in the past 24 months to qualify for PMI cancellation?

The Homeowners Protection Act (HPA) is the legislation that specifies the criteria under which private mortgage insurance (PMI) can be canceled. One of the key provisions of the act is that it requires borrowers to demonstrate a history of responsible payment behavior, specifically that they have no 60-day late payments in the past 24 months to qualify for PMI cancellation. This regulation aims to protect borrowers from unnecessary PMI costs and to ensure that only those who have maintained a good payment record can benefit from the cancellation of insurance that is typically required when the down payment is less than 20% of the home’s value.

The other acts mentioned serve different purposes. The Home Mortgage Disclosure Act (HMDA) focuses on providing information about mortgage lending patterns to ensure fair lending practices. The Mortgage Assistance Relief Services (MARS) was established to prevent deceptive practices in mortgage assistance. The Home Ownership Equity Protection Act (HOEPA) addresses certain mortgage provisions and high-cost loans, but does not pertain to the cancellation of PMI. Thus, the Homeowners Protection Act is indeed the correct choice concerning the criteria for PMI cancellation.