source:
  type: regulation
  id: hpa-12usc-4902
  authority: 12 U.S.C. §4902 — Termination of private mortgage insurance
  description: '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.

    '
obligations:
- id: hpa-12usc-4902-a
  canonical_id: hpa-12usc-4902-a
  section: 12 U.S.C. §4902(a)
  description: '(a): (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—
    (1) submit…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 U.S.C. §4902(a)
    source_class: hpa-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/4902
    snapshot_id: 7b4f49d71c1a7a34
    fetched_at: '2026-05-24T00:46:52Z'
    content_hash: sha256:903ce36c677376ced642986828cc47c4326e5498fde9199a2cea79a8a92825fc
    paragraph_quote: (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— (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.
    drafter_attestation: Verbatim subsection of 12 U.S.C. §4902 from Cornell LII snapshot 7b4f49d71c1a7a34;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: hpa-12usc-4902-b
  canonical_id: hpa-12usc-4902-b
  section: 12 U.S.C. §4902(b)
  description: '(b): (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— (1) on the termination date if, on that date, the mortgagor is current
    on the payme…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 U.S.C. §4902(a)
    source_class: hpa-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/4902
    snapshot_id: 7b4f49d71c1a7a34
    fetched_at: '2026-05-24T00:46:52Z'
    content_hash: sha256:903ce36c677376ced642986828cc47c4326e5498fde9199a2cea79a8a92825fc
    paragraph_quote: (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— (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 .
    drafter_attestation: Verbatim subsection of 12 U.S.C. §4902 from Cornell LII snapshot 7b4f49d71c1a7a34;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: hpa-12usc-4902-c
  canonical_id: hpa-12usc-4902-c
  section: 12 U.S.C. §4902(c)
  description: '(c): (c) Final termination 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 t…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 U.S.C. §4902(a)
    source_class: hpa-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/4902
    snapshot_id: 7b4f49d71c1a7a34
    fetched_at: '2026-05-24T00:46:52Z'
    content_hash: sha256:903ce36c677376ced642986828cc47c4326e5498fde9199a2cea79a8a92825fc
    paragraph_quote: (c) Final termination 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.
    drafter_attestation: Verbatim subsection of 12 U.S.C. §4902 from Cornell LII snapshot 7b4f49d71c1a7a34;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: hpa-12usc-4902-d
  canonical_id: hpa-12usc-4902-d
  section: 12 U.S.C. §4902(d)
  description: '(d): (d) Treatment of loan modifications If a mortgagor and mortgagee (or holder of the
    mortgage) agree to a modification of the terms or conditions of a loan pursuant to a residential mortgage
    transaction , the cancellation date, termination date, or final termination shall be recalculated
    to reflect th…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 U.S.C. §4902(a)
    source_class: hpa-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/4902
    snapshot_id: 7b4f49d71c1a7a34
    fetched_at: '2026-05-24T00:46:52Z'
    content_hash: sha256:903ce36c677376ced642986828cc47c4326e5498fde9199a2cea79a8a92825fc
    paragraph_quote: (d) Treatment of loan modifications If a mortgagor and mortgagee (or holder of the
      mortgage) agree to a modification of the terms or conditions of a loan pursuant to a residential
      mortgage transaction , the cancellation date, termination date, or final termination shall be recalculated
      to reflect the modified terms and conditions of such loan.
    drafter_attestation: Verbatim subsection of 12 U.S.C. §4902 from Cornell LII snapshot 7b4f49d71c1a7a34;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: hpa-12usc-4902-e
  canonical_id: hpa-12usc-4902-e
  section: 12 U.S.C. §4902(e)
  description: '(e): (e) No further payments No payments or premiums may be required from the mortgagor
    in connection with a private mortgage insurance requirement terminated or canceled under this section—
    (1) in the case of cancellation under subsection (a), more than 30 days after the later of— (A) the
    date on which …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 U.S.C. §4902(a)
    source_class: hpa-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/4902
    snapshot_id: 7b4f49d71c1a7a34
    fetched_at: '2026-05-24T00:46:52Z'
    content_hash: sha256:903ce36c677376ced642986828cc47c4326e5498fde9199a2cea79a8a92825fc
    paragraph_quote: (e) No further payments No payments or premiums may be required from the mortgagor
      in connection with a private mortgage insurance requirement terminated or canceled under this section—
      (1) in the case of cancellation under subsection (a), more than 30 days after the later of— (A)
      the date on which a request under subsection (a)(1) is received; or (B) the date on which the mortgagor
      satisfies any evidence and certification requirements under subsection (a)(4); (2) in the case of
      termination under subsection (b), more than 30 days after the termination date or the date referred
      to in subsection (b)(2), as applicable; and (3) in the case of termination under subsection (c),
      more than 30 days after the final termination date established under that subsection.
    drafter_attestation: Verbatim subsection of 12 U.S.C. §4902 from Cornell LII snapshot 7b4f49d71c1a7a34;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: hpa-12usc-4902-f
  canonical_id: hpa-12usc-4902-f
  section: 12 U.S.C. §4902(f)
  description: '(f): (f) Return of unearned premiums (1) In general Not later than 45 days after the termination
    or cancellation of a private mortgage insurance requirement under this section, all unearned premiums
    for private mortgage insurance shall be returned to the mortgagor by the servicer. (2) Transfer of
    funds t…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 U.S.C. §4902(a)
    source_class: hpa-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/4902
    snapshot_id: 7b4f49d71c1a7a34
    fetched_at: '2026-05-24T00:46:52Z'
    content_hash: sha256:903ce36c677376ced642986828cc47c4326e5498fde9199a2cea79a8a92825fc
    paragraph_quote: (f) Return of unearned premiums (1) In general Not later than 45 days after the termination
      or cancellation of a private mortgage insurance requirement under this section, all unearned premiums
      for private mortgage insurance shall be returned to the mortgagor by the servicer. (2) Transfer
      of funds to servicer Not later than 30 days after 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 servicer
      of the subject mortgage an amount equal to the amount of the unearned premiums for repayment in
      accordance with paragraph (1).
    drafter_attestation: Verbatim subsection of 12 U.S.C. §4902 from Cornell LII snapshot 7b4f49d71c1a7a34;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: hpa-12usc-4902-g
  canonical_id: hpa-12usc-4902-g
  section: 12 U.S.C. §4902(g)
  description: '(g): (g) Exceptions for high risk loans (1) In general The termination and cancellation
    provisions in subsections (a) and (b) do not apply to any residential mortgage transaction that, at
    the time at which the residential mortgage transaction is consummated, has high risks associated with
    the extension o…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 U.S.C. §4902(a)
    source_class: hpa-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/4902
    snapshot_id: 7b4f49d71c1a7a34
    fetched_at: '2026-05-24T00:46:52Z'
    content_hash: sha256:903ce36c677376ced642986828cc47c4326e5498fde9199a2cea79a8a92825fc
    paragraph_quote: (g) Exceptions for high risk loans (1) In general The termination and cancellation
      provisions in subsections (a) and (b) do not apply to any residential mortgage transaction that,
      at the time at which the residential mortgage transaction is consummated, has high risks associated
      with the extension of the loan— (A) as determined in accordance with guidelines published by the
      Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, in the case
      of a mortgage loan with an original principal balance that does not exceed the applicable annual
      conforming loan limit for the secondary market established pursuant to section 1454(a)(2) of this
      title , so as to require the imposition or continuation of a private mortgage insurance requirement
      beyond the terms specified in subsection (a) or (b) of this section; or (B) as determined by the
      mortgagee in the case of any other mortgage, except that termination shall occur—
    drafter_attestation: Verbatim subsection of 12 U.S.C. §4902 from Cornell LII snapshot 7b4f49d71c1a7a34;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: hpa-12usc-4902-i
  canonical_id: hpa-12usc-4902-i
  section: 12 U.S.C. §4902(i)
  description: '(i): (i) with respect to a fixed rate mortgage , on 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 77 percent
    of the origi…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 U.S.C. §4902(a)
    source_class: hpa-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/4902
    snapshot_id: 7b4f49d71c1a7a34
    fetched_at: '2026-05-24T00:46:52Z'
    content_hash: sha256:903ce36c677376ced642986828cc47c4326e5498fde9199a2cea79a8a92825fc
    paragraph_quote: (i) with respect to a fixed rate mortgage , on 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 77 percent
      of the original value of the property securing the loan; and (ii) with respect to an adjustable
      rate mortgage , on 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 77 percent of the original value of
      the property securing the loan. (2) Termination at midpoint A private mortgage insurance requirement
      in connection with a residential mortgage transaction described in paragraph (1) shall terminate
      in accordance with subsection (c). (3) Rule of construction Nothing in this subsection may be construed
      to require a residential mortgage or residential mortgage transaction described in paragraph (1)(A)
      to be purchased by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.
      (4) GAO report Not later than 2 years after July 29, 1998 , the Comptroller General of the United
      States shall submit to the Congress a report describing the volume and characteristics of residential
      mortgages and residential mortgage transactions that, pursuant to paragraph (1) of this subsection,
      are exempt from the application of subsections (a) and (b). The report shall— (A) determine the
      number or volume of such mortgages and transactions compared to residential mortgages and residential
      mortgage transactions that are not classified as high-risk for purposes of paragraph (1); and (B)
      identify the characteristics of such mortgages and transactions that result in their classification
      (for purposes of paragraph (1)) as having high risks associated with the extension of the loan and
      describe such characteristics, including—
    drafter_attestation: Verbatim subsection of 12 U.S.C. §4902 from Cornell LII snapshot 7b4f49d71c1a7a34;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: hpa-12usc-4902-i
  canonical_id: hpa-12usc-4902-i
  section: 12 U.S.C. §4902(i)
  description: '(i): (i) the income levels and races of the mortgagors involved; (ii) the amount of the
    downpayments involved and the downpayments expressed as percentages of the acquisition costs of the
    properties involved; (iii) the types and locations of the properties involved; (iv) the mortgage principal
    amounts; a…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 U.S.C. §4902(a)
    source_class: hpa-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/4902
    snapshot_id: 7b4f49d71c1a7a34
    fetched_at: '2026-05-24T00:46:52Z'
    content_hash: sha256:903ce36c677376ced642986828cc47c4326e5498fde9199a2cea79a8a92825fc
    paragraph_quote: (i) the income levels and races of the mortgagors involved; (ii) the amount of the
      downpayments involved and the downpayments expressed as percentages of the acquisition costs of
      the properties involved; (iii) the types and locations of the properties involved; (iv) the mortgage
      principal amounts; and
    drafter_attestation: Verbatim subsection of 12 U.S.C. §4902 from Cornell LII snapshot 7b4f49d71c1a7a34;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: hpa-12usc-4902-v
  canonical_id: hpa-12usc-4902-v
  section: 12 U.S.C. §4902(v)
  description: '(v): (v) any other characteristics of such mortgages and transactions that may contribute
    to their classification as high risk for purposes of paragraph (1), including whether such mortgages
    are purchase-money mortgages or refinancings and whether and to what extent such loans are low-documentation
    loans…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 U.S.C. §4902(a)
    source_class: hpa-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/4902
    snapshot_id: 7b4f49d71c1a7a34
    fetched_at: '2026-05-24T00:46:52Z'
    content_hash: sha256:903ce36c677376ced642986828cc47c4326e5498fde9199a2cea79a8a92825fc
    paragraph_quote: (v) any other characteristics of such mortgages and transactions that may contribute
      to their classification as high risk for purposes of paragraph (1), including whether such mortgages
      are purchase-money mortgages or refinancings and whether and to what extent such loans are low-documentation
      loans.
    drafter_attestation: Verbatim subsection of 12 U.S.C. §4902 from Cornell LII snapshot 7b4f49d71c1a7a34;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: hpa-12usc-4902-h
  canonical_id: hpa-12usc-4902-h
  section: 12 U.S.C. §4902(h)
  description: '(h): (h) Accrued obligation for premium payments The cancellation or termination under
    this section of the private mortgage insurance of a mortgagor shall not affect the rights of any mortgagee,
    servicer, or mortgage insurer to enforce any obligation of such mortgagor for premium payments accrued
    prior t…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 U.S.C. §4902(a)
    source_class: hpa-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/4902
    snapshot_id: 7b4f49d71c1a7a34
    fetched_at: '2026-05-24T00:46:52Z'
    content_hash: sha256:903ce36c677376ced642986828cc47c4326e5498fde9199a2cea79a8a92825fc
    paragraph_quote: (h) Accrued obligation for premium payments The cancellation or termination under
      this section of the private mortgage insurance of a mortgagor shall not affect the rights of any
      mortgagee, servicer, or mortgage insurer to enforce any obligation of such mortgagor for premium
      payments accrued prior to the date on which such cancellation or termination occurred. ( Pub. L.
      105–216, § 3 , July 29, 1998 , 112 Stat. 899 ; Pub. L. 106–569, title IV , §§ 402(a)(2), (c)(1),
      403(a), 404, 405(b), (c), Dec. 27, 2000 , 114 Stat. 2956–2958 .)
    drafter_attestation: Verbatim subsection of 12 U.S.C. §4902 from Cornell LII snapshot 7b4f49d71c1a7a34;
      body isolated between nav and notes; substring-verified.
  judgment: false
