Homeowners Protection Act of 1998 • 12 U.S.C. § 4902
PMI Removal & Overcharge Calculator: Stop Paying “Zombie” Mortgage Insurance
Under the federal Homeowners Protection Act (12 U.S.C. § 4902), your mortgage servicer must allow written PMI cancellation at 80% LTV and is legally required to automatically terminate PMI at 78% LTV. Yet thousands of homeowners keep getting billed $120–$300/month in “Zombie PMI” after crossing the threshold.
Homeowners Protection Act (HPA) 80% / 78% LTV PMI Calculator
Check if your servicer is illegally billing PMI under 12 U.S.C. § 4902
Current Loan-to-Value (LTV):76.00%
80% Request Threshold:$320,000
78% Mandatory Auto-Drop:$312,000
Mandatory 78% Termination Violated
$1,320 Unearned PMI Owed
Under 12 U.S.C. § 4902(b), your servicer was legally required to automatically terminate PMI at 78% LTV ($312,000). Unearned premiums must be refunded under 12 U.S.C. § 4905.
Frequently Asked Questions: Homeowners Protection Act PMI Rules
What is the difference between the 80% LTV and 78% LTV PMI rules?
Under the federal Homeowners Protection Act of 1998 (12 U.S.C. § 4902), you have the legal right to request written cancellation of Private Mortgage Insurance (PMI) once your principal balance reaches 80% of your home’s original value (§ 4902(a)). Once your balance reaches 78% of the original value, the servicer is federally mandated to AUTOMATICALLY terminate PMI (§ 4902(b)) without any request or appraisal fee—provided you are current on your monthly payments.
Can my servicer force me to pay for an appraisal if my balance is already at 78% of the original purchase price?
No! When your unpaid principal balance reaches 78% of the ORIGINAL value (the lesser of the contract sales price or original appraised value at closing) on a conventional loan, termination under 12 U.S.C. § 4902(b) is mandatory and automatic. Appraisal requirements typically only apply when requesting early cancellation based on new market appreciation or borrower-initiated 80% requests.
Am I entitled to a refund if my servicer kept billing PMI past the 78% termination date?
Yes. Under 12 U.S.C. § 4905(f), no unearned private mortgage insurance premiums may be retained after the mandatory termination date, and all unearned premiums must be returned to the mortgagor within 45 days.
Demand Immediate PMI Termination & Refund of Unearned Premiums
Upload your monthly mortgage statement to verify your exact LTV and generate a formal statutory Notice of Error & HPA Cancellation Demand Letter.