12 U.S.C. §4902 — Termination of private mortgage insurance
HPA core operative section. Borrower-initiated cancellation at 80% original value (with good payment history), automatic termination at 78% termination date, final termination at the midpoint of the amortization period, recalculation on loan modification, 30-day no-further-payments cutoff, 45-day return of unearned premiums, and high-risk-loan exceptions.
Verbatim regulatory text
Verbatim provisions from 12 U.S.C. §4902 — Termination of private mortgage insurance — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
12 U.S.C. §4902(a) — Borrower cancellation at 80% LTV
(a) Borrower cancellation A requirement for private mortgage insurance in connection with a residential mortgage transaction shall be canceled on the cancellation date or any later date that the mortgagor fulfills all of the requirements under paragraphs (1) through (4), if the mortgagor—
12 U.S.C. §4902(b) — Automatic termination at 78% LTV termination date
(b) Automatic termination A requirement for private mortgage insurance in connection with a residential mortgage transaction shall terminate with respect to payments for that mortgage insurance made by the mortgagor—
12 U.S.C. §4902(c) — Final termination at midpoint of amortization
If a requirement for private mortgage insurance is not otherwise canceled or terminated in accordance with subsection (a) or (b), in no case may such a requirement be imposed on residential mortgage transactions beyond the first day of the month immediately following the date that is the midpoint of the amortization period of the loan if the mortgagor is current on the payments required by the terms of the mortgage.
12 U.S.C. §4902(a) — Borrower cancellation at 80% LTV — enumerated items (chapeau recall fix)
(1) submits a request in writing to the servicer that cancellation be initiated; (2) has a good payment history with respect to the residential mortgage; (3) is current on the payments required by the terms of the residential mortgage transaction ; and (4) has satisfied any requirement of the holder of the mortgage (as of the date of a request under paragraph (1)) for— (A) evidence (of a type established in advance and made known to the mortgagor by the servicer promptly upon receipt of a request under paragraph (1)) that the value of the property securing the mortgage has not declined below the original value of the property; and (B) certification that the equity of the mortgagor in the residence securing the mortgage is unencumbered by a subordinate lien.
12 U.S.C. §4902(b) — Automatic termination at 78% LTV termination date — enumerated items (chapeau recall fix)
(1) on the termination date if, on that date, the mortgagor is current on the payments required by the terms of the residential mortgage transaction ; or (2) if the mortgagor is not current on the termination date , on the first day of the first month beginning after the date that the mortgagor becomes current on the payments required by the terms of the residential mortgage transaction .