U.S. Code » Title 12 » Chapter CHAPTER 49— HOMEOWNERS PROTECTION

12 U.S.C. § 4901

Definitions

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In this chapter, the following definitions shall apply:(1) Adjustable rate mortgage

The term “adjustable rate mortgage” means a residential mortgage that has an interest rate that is subject to change. A residential mortgage that: (A) does not fully amortize over the term of the obligation; and (B) contains a conditional right to refinance or modify the unamortized principal at the maturity date of the term, shall be considered to be an adjustable rate mortgage for purposes of this chapter.

(2) Cancellation dateThe term “cancellation date” means—(A) with respect to a fixed rate mortgage, at the option of the mortgagor, the date on which the principal balance of the mortgage—(i) based solely on the initial amortization schedule for that mortgage, and irrespective of the outstanding balance for that mortgage on that date, is first scheduled to reach 80 percent of the original value of the property securing the loan; or(ii) based solely on actual payments, reaches 80 percent of the original value of the property securing the loan; and(B) with respect to an adjustable rate mortgage, at the option of the mortgagor, the date on which the principal balance of the mortgage—(i) based solely on the amortization schedule then in effect for that mortgage, and irrespective of the outstanding balance for that mortgage on that date, is first scheduled to reach 80 percent of the original value of the property securing the loan; or(ii) based solely on actual payments, first reaches 80 percent of the original value of the property securing the loan.(3) Fixed rate mortgage

The term “fixed rate mortgage” means a residential mortgage that has an interest rate that is not subject to change.

(4) Good payment historyThe term “good payment history” means, with respect to a mortgagor, that the mortgagor has not—(A) made a mortgage payment that was 60 days or longer past due during the 12-month period beginning 24 months before the later of (i) the date on which the mortgage reaches the cancellation date, or (ii) the date that the mortgagor submits a request for cancellation under section 4902(a)(1) of this title; or(B) made a mortgage payment that was 30 days or longer past due during the 12-month period preceding the later of (i) the date on which the mortgage reaches the cancellation date, or (ii) the date that the mortgagor submits a request for cancellation under section 4902(a)(1) of this title.(5) Initial amortization scheduleThe term “initial amortization schedule” means a schedule established at the time at which a residential mortgage transaction is consummated with respect to a fixed rate mortgage, showing—(A) the amount of principal and interest that is due at regular intervals to retire the principal balance and accrued interest over the amortization period of the loan; and(B) the unpaid principal balance of the loan after each scheduled payment is made.(6) Amortization schedule then in effectThe term “amortization schedule then in effect” means, with respect to an adjustable rate mortgage, a schedule established at the time at which the residential mortgage transaction is consummated or, if such schedule has been changed or recalculated, is the most recent schedule under the terms of the note or mortgage, which shows—(A) the amount of principal and interest that is due at regular intervals to retire the principal balance and accrued interest over the remaining amortization period of the loan; and(B) the unpaid balance of the loan after each such scheduled payment is made.(7) Midpoint of the amortization period

The term “midpoint of the amortization period” means, with respect to a residential mortgage transaction, the point in time that is halfway through the period that begins upon the first day of the amortization period established at the time a residential mortgage transaction is consummated and ends upon the completion of the entire period over which the mortgage is scheduled to be amortized.

(8) Mortgage insurance

The term “mortgage insurance” means insurance, including any mortgage guaranty insurance, against the nonpayment of, or default on, an individual mortgage or loan involved in a residential mortgage transaction.

(9) Mortgage insurer

The term “mortgage insurer” means a provider of private mortgage insurance, as described in this chapter, that is authorized to transact such business in the State in which the provider is transacting such business.

(10) Mortgagee

The term “mortgagee” means the holder of a residential mortgage at the time at which that mortgage transaction is consummated.

(11) Mortgagor

The term “mortgagor” means the original borrower under a residential mortgage or his or her successors or assignees.

(12) Original value

The term “original value”, with respect to a residential mortgage transaction, means the lesser of the sales price of the property securing the mortgage, as reflected in the contract, or the appraised value at the time at which the subject residential mortgage transaction was consummated. In the case of a residential mortgage transaction for refinancing the principal residence of the mortgagor, such term means only the appraised value relied upon by the mortgagee to approve the refinance transaction.

(13) Private mortgage insurance

The term “private mortgage insurance” means mortgage insurance other than mortgage insurance made available under the National Housing Act [12 U.S.C. 1701 et seq.], title 38, or title V of the Housing Act of 1949 [42 U.S.C. 1471 et seq.].

(14) Residential mortgage

The term “residential mortgage” means a mortgage, loan, or other evidence of a security interest created with respect to a single-family dwelling that is the principal residence of the mortgagor.

(15) Residential mortgage transaction

The term “residential mortgage transaction” means a transaction consummated on or after the date that is 1 year after July 29, 1998, in which a mortgage, deed of trust, purchase money security interest arising under an installment sales contract, or equivalent consensual security interest is created or retained against a single-family dwelling that is the principal residence of the mortgagor to finance the acquisition, initial construction, or refinancing of that dwelling.

(16) Servicer

The term “servicer” has the same meaning as in section 2605(i)(2) of this title, with respect to a residential mortgage.

(17) Single-family dwelling

The term “single-family dwelling” means a residence consisting of 1 family dwelling unit.

(18) Termination dateThe term “termination date” means—(A) with respect to a fixed rate mortgage, the date on which the principal balance of the mortgage, based solely on the initial amortization schedule for that mortgage, and irrespective of the outstanding balance for that mortgage on that date, is first scheduled to reach 78 percent of the original value of the property securing the loan; and(B) with respect to an adjustable rate mortgage, the date on which the principal balance of the mortgage, based solely on the amortization schedule then in effect for that mortgage, and irrespective of the outstanding balance for that mortgage on that date, is first scheduled to reach 78 percent of the original value of the property securing the loan.(Pub. L. 105–216, § 2, July 29, 1998, 112 Stat. 897; Pub. L. 106–569, title IV, §§ 402(a)(1), (b), 405(a), 406(b)–(d), Dec. 27, 2000, 114 Stat. 2956, 2958, 2959.)Editorial NotesReferences in Text

This chapter, referred to in text, was in the original “this Act”, meaning Pub. L. 105–216, July 29, 1998, 112 Stat. 897, known as the Homeowners Protection Act of 1998. For complete classification of this Act to the Code, see Short Title note below and Tables.

The National Housing Act, referred to in par. (13), is act June 27, 1934, ch. 847, 48 Stat. 1246, which is classified principally to chapter 13 (§ 1701 et seq.) of this title. For complete classification of this Act to the Code, see section 1701 of this title and Tables.

The Housing Act of 1949, referred to in par. (13), is act July 15, 1949, ch. 338, 63 Stat. 413. Title V of the Act is classified generally to subchapter III (§ 1471 et seq.) of chapter 8A of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 1441 of Title 42 and Tables.

Amendments

2000—Par. (1). Pub. L. 106–569, § 402(b), inserted at end “A residential mortgage that: (A) does not fully amortize over the term of the obligation; and (B) contains a conditional right to refinance or modify the unamortized principal at the maturity date of the term, shall be considered to be an adjustable rate mortgage for purposes of this chapter.”

Par. (2)(B)(i). Pub. L. 106–569, § 402(a)(1)(A), substituted “the amortization schedule then in effect” for “amortization schedules”.

Par. (4)(A). Pub. L. 106–569, § 405(a)(1), inserted “the later of (i)” before “the date on which the mortgage” and “, or (ii) the date that the mortgagor submits a request for cancellation under section 4902(a)(1) of this title” before the semicolon.

Par. (4)(B). Pub. L. 106–569, § 405(a)(2), inserted “the later of (i)” before “the date on which the mortgage” and “, or (ii) the date that the mortgagor submits a request for cancellation under section 4902(a)(1) of this title” before period at end.

Par. (6). Pub. L. 106–569, § 402(a)(1)(D), added par. (6). Former par. (6) redesignated (8).

Par. (7). Pub. L. 106–569, § 406(b), added par. (7). Former par. (7) redesignated (9).

Pars. (8) to (11). Pub. L. 106–569, § 402(a)(1)(C), redesignated pars. (6) to (9) as (8) to (11), respectively. Former pars. (10) and (11) redesignated (12) and (13), respectively.

Par. (12). Pub. L. 106–569, § 406(c), inserted “transaction” after “a residential mortgage” and inserted at end “In the case of a residential mortgage transaction for refinancing the principal residence of the mortgagor, such term means only the appraised value relied upon by the mortgagee to approve the refinance transaction.”

Pub. L. 106–569, § 402(a)(1)(C), redesignated par. (10) as (12). Former par. (12) redesignated (14).

Par. (13). Pub. L. 106–569, § 402(a)(1)(C), redesignated par. (11) as (13). Former par. (13) redesignated (15).

Par. (14). Pub. L. 106–569, § 406(d)(1), substituted “principal residence of the mortgagor” for “primary residence of the mortgagor”.

Pub. L. 106–569, § 402(a)(1)(C), redesignated par. (12) as (14). Former par. (14) redesignated (16).

Par. (15). Pub. L. 106–569, § 406(d)(2), substituted “principal residence of the mortgagor” for “primary residence of the mortgagor”.

Pub. L. 106–569, § 402(a)(1)(C), redesignated par. (13) as (15). Former par. (15) redesignated (17).

Par. (16). Pub. L. 106–569, § 402(a)(1)(C), redesignated par. (14) as (16). Former par. (16) redesignated (18).

Par. (16)(B). Pub. L. 106–569, § 402(a)(1)(B), substituted “the amortization schedule then in effect” for “amortization schedules”.

Pars. (17), (18). Pub. L. 106–569, § 402(a)(1)(C), redesignated pars. (15) and (16) as (17) and (18), respectively.

Statutory Notes and Related SubsidiariesEffective Date

Pub. L. 105–216, § 13, July 29, 1998, 112 Stat. 908, provided that: “This Act [enacting this chapter and amending section 1088 of Title 20, Education], other than section 14 [enacting provisions set out as notes under sections 1441a and 1831q of this title and amending provisions set out as a note under section 1831q of this title], shall become effective 1 year after the date of enactment of this Act [July 29, 1998].”

Short Title of 2000 Amendment

Pub. L. 106–569, title IV, § 401, Dec. 27, 2000, 114 Stat. 2956, provided that: “This title [amending this section and sections 4902, 4903, and 4905 of this title] may be cited as the ‘Private Mortgage Insurance Technical Corrections and Clarification Act’.”

Short Title

Pub. L. 105–216, § 1(a), July 29, 1998, 112 Stat. 897, provided that: “This Act [enacting this chapter, amending section 1088 of Title 20, Education, enacting provisions set out as notes under sections 1441a and 1831q of this title, and amending provisions set out as a note under section 1831q of this title] may be cited as the ‘Homeowners Protection Act of 1998’.”

Notes of Decisions
Cited in 15 cases (8 in the last 5 years), 2010–2025 · leading case: Ginnine Fried v. JP Morgan Chase & Co, 850 F.3d 590 (3rd Cir. 2017).
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Ginnine Fried v. JP Morgan Chase & Co, 850 F.3d 590 (3rd Cir. 2017). · cites it 13× “Whether it could do this depends on how we interpret the Homeowners Protection Act (“Protection Act”), 12 U.S.C. § 4901 et seq. Does it permit a servicer to rely on an updated property value, estimated by a broker, to recalculate the length of a homeowner’s mortgage insurance…”
Fellows v. CitiMortgage, Inc., 710 F. Supp. 2d 385 (S.D.N.Y. 2010). · cites it 3× “The letter stated that pursuant to certain provisions of the HPA, 12 U.S.C. §§ 4901 (2) and 4902, Fellows could request cancellation of the PMI when the principal balance of the mortgage is 80 percent of the original value of the Property.”
Dwoskin v. Bank of Am., N.A., 850 F. Supp. 2d 557 (D. Maryland 2012). “Plaintiffs allege the Bank’s conduct violated the Homeowners Protection Act of 1998, 12 U.S.C. § 4901 , et seq., and the Maryland Consumer Protection Act, Md.”
Steve Kovachevich v. Nat'l Mortg. Ins. Corp., 140 F.4th 548 (4th Cir. 2025). · cites it 2× “r notification by the servicer of termination or cancellation of private mortgage insurance under this chapter with respect to a mortgagor, a mortgage insurer that is in possession of any unearned premiums of that mortgagor shall transfer to the 1 In summary, once a homeowner…”
Gregor v. Aurora Bank FSB, 26 F. Supp. 3d 146 (D.R.I. 2014). “The Homeowners Protection Act The federal Homeowners Protection Act, 12 U.S.C. §§ 4901 et seq., sets forth requirements and restrictions on the placement of private mortgage insurance on residential mortgages.”
Ihebereme v. Capital One, N.A. ex rel. Chevy Chase Bank FSB, 573 F. App'x 2 (D.C. Cir. 2014). “Nor has appellant shown that appellee breached its duty of good faith and fair dealing or violated the Homeowners Protection Act, 12 U.S.C. § 4901 et seq., by denying his request to cancel the private mortgage insurance (“PMI”) requirement.”
Abruscato v. Wells Fargo Bank, N.A., d/b/a Wells Fargo Home Mortg. (N.D. Ill. 2022). · cites it 3× “a similarly situated class,2 alleging that Defendants’ refusal to refund the unpaid PMI premiums constituted a violation of the federal Homeowners Protection Act (the HPA), 12 U.S.C. §§ 4901 et seq. (Count I), a breach of contract (Count II), and a violation of the Illinois…”
Scotiabank De P.R. v. Halais-Borges, 350 F. Supp. 3d 39 (2018). “, (7) the Homeowner's Protection Act, 12 U.S.C. §§ 4901 -4910, and (8) the Fair Debt Collection Practices Act, 15 U.”
Ditech Holding Corp. (Bankr. S.D.N.Y. 2023). · cites it 2× “12 U.S.C. § 4901 (2). To request cancellation of BPMI, the borrower must (1) submit a request in writing; (2) have a good payment history; (3) be current on payments; and (4) establish that the value of the property securing the mortgage has not declined below the original value…”
Ditech Holding Corp. (Bankr. S.D.N.Y. 2023). · cites it 2× “The Consumer Claims Trustee asserts, and the Court agrees, that in alleging that he has overpaid his PMI, Claimant purports to assert a claim against Ditech under the Homeowners Protection Act of 1998, 12 U.S.C. §§ 4901–4910 (the “HPA”). The HPA establishes rules for (i)…”
Bedore v. Nationstar Mortg. LLC (D. Colo. 2024). “”); 12 U.S.C. § 4901 (15) (HPA) (cancellation of PMI for “residential mortgage transactions” only includes those mortgages “created or retained against a single- family dwelling that is the principal residence of the mortgagor”).”
Washington v. Wells Fargo Bank, Nat'l Ass'n (M.D.N.C. 2023). “See 12 U.S.C. §§ 4901 et seq. The HPA has an express preemption clause, which provides that it “shall supersede any provisions of the law of any State relating to requirements for obtaining or maintaining private mortgage insurance in connection with residential mortgage…”
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