HPA does not apply to which type of loan?

The Homeowners Protection Act (HPA) is designed to protect homeowners from being charged unnecessarily for private mortgage insurance (PMI). It requires lenders to cancel PMI when the homeowner’s equity reaches 20%, as well as providing guidelines for homeowners to request cancellation. HPA specifically pertains to conventional loans, which are loans not backed by a government agency.

FHA loans, on the other hand, are government-insured loans that come with their own set of insurance requirements. For FHA loans, mortgage insurance is mandatory and remains in effect for the life of the loan if made after June 3, 2013, unless certain conditions are met (like refinancing). As such, the HPA regulations do not apply, since the terms for mortgage insurance cancellation are different and regulated by the Federal Housing Administration rather than the HPA. This distinction is crucial for understanding the different types of mortgage insurance regulations associated with various loan types.