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Informational Memorandum
Subject:Homeowners Protection Act of 1998--Technical Corrections
Date of Memorandum:07/25/2001
Expiration Date:
Office:OE
Signed By:Smith, Roland
FCA Contact Person:Holland, Tom
Contact Phone:703-883-4484
List of Attachments:HOPA Technical Corrections and Clarification

INFORMATIONAL MEMORANDUM



July 25, 2001


To: The Chief Executive Officer
All Farm Credit System Institutions

From: Roland E. Smith, Director
Office of Examination

Subject: Homeowners Protection Act of 1998—Technical Corrections and Clarification


Title IV of the American Homeownership and Economic Opportunity Act of 2000 (entitled Private Mortgage Insurance Cancellation and Termination) provides technical corrections and clarification to the Homeowners Protection Act of 1998 (HOPA). HOPA addresses the difficulties homeowners have experienced in canceling private mortgage insurance (PMI). It establishes provisions for the cancellation and termination of PMI, establishes disclosure and notification requirements, and requires the return of unearned premiums. HOPA protects homeowners by prohibiting life of loan PMI for residential mortgage transactions, and it establishes uniform procedures for cancellation of PMI policies.

The technical corrections and clarification are attached. We encourage you to ensure responsible staff understands and complies with the corrections to HOPA.

If you have any questions about this memorandum, please call Thomas J. Holland, Director, Special Examination and Supervision Division, Office of Examination, at (703) 883-4483, or you may contact him at his e-mail address hollandt@fca.gov.

Attachment:
http://www.ncua.gov/ref/reg_alerts/REG_ALERT.html (01-RA-04, Homeowners Protection Act (HOPA))