source:
  type: regulation
  id: hpa-12usc-4905
  authority: 12 U.S.C. §4905 — Disclosure requirements for lender paid mortgage insurance
  description: 'HPA lender-paid mortgage insurance (LPMI) section. Definitions

    of borrower-paid PMI, lender-paid PMI, and loan commitment;

    statutory exclusion of LPMI from §§4902-4904 cancellation/

    termination/notification framework; loan-commitment LPMI

    disclosure (differences from BPMI, higher-rate effect, refinance-

    only termination, cost-benefit analysis); 30-day post-notional-

    termination refinance-options notice.

    '
obligations:
- id: hpa-12usc-4905-a
  canonical_id: hpa-12usc-4905-a
  section: 12 U.S.C. §4905(a)
  description: '(a): (a) Definitions For purposes of this section— (1) the term “ borrower paid mortgage
    insurance ” means private mortgage insurance that is required in connection with a residential mortgage
    transaction, payments for which are made by the borrower; (2) the term “ lender paid mortgage insurance
    ” means …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 U.S.C. §4905(c)(1)
    source_class: hpa-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/4905
    snapshot_id: 07eec8c1cca4541e
    fetched_at: '2026-05-24T00:47:09Z'
    content_hash: sha256:40c4f9654956d8f84567f447eac626d0b7bbbb7faeff30c023cf6a701d9806e1
    paragraph_quote: (a) Definitions For purposes of this section— (1) the term “ borrower paid mortgage
      insurance ” means private mortgage insurance that is required in connection with a residential mortgage
      transaction, payments for which are made by the borrower; (2) the term “ lender paid mortgage insurance
      ” means private mortgage insurance that is required in connection with a residential mortgage transaction,
      payments for which are made by a person other than the borrower; and (3) the term “ loan commitment
      ” means a prospective mortgagee’ s written confirmation of its approval, including any applicable
      closing conditions, of the application of a prospective mortgagor for a residential mortgage loan.
    drafter_attestation: Verbatim subsection of 12 U.S.C. §4905 from Cornell LII snapshot 07eec8c1cca4541e;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: hpa-12usc-4905-b
  canonical_id: hpa-12usc-4905-b
  section: 12 U.S.C. §4905(b)
  description: '(b): (b) Exclusion Sections 4902 through 4904 of this title do not apply in the case of
    lender paid mortgage insurance .'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 U.S.C. §4905(c)(1)
    source_class: hpa-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/4905
    snapshot_id: 07eec8c1cca4541e
    fetched_at: '2026-05-24T00:47:09Z'
    content_hash: sha256:40c4f9654956d8f84567f447eac626d0b7bbbb7faeff30c023cf6a701d9806e1
    paragraph_quote: (b) Exclusion Sections 4902 through 4904 of this title do not apply in the case of
      lender paid mortgage insurance .
    drafter_attestation: Verbatim subsection of 12 U.S.C. §4905 from Cornell LII snapshot 07eec8c1cca4541e;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: hpa-12usc-4905-c
  canonical_id: hpa-12usc-4905-c
  section: 12 U.S.C. §4905(c)
  description: '(c): (c) Notices to mortgagor In the case of lender paid mortgage insurance that is required
    in connection with a residential mortgage transaction— (1) not later than the date on which a loan
    commitment is made for the residential mortgage transaction, the prospective mortgagee shall provide
    to the prosp…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 U.S.C. §4905(c)(1)
    source_class: hpa-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/4905
    snapshot_id: 07eec8c1cca4541e
    fetched_at: '2026-05-24T00:47:09Z'
    content_hash: sha256:40c4f9654956d8f84567f447eac626d0b7bbbb7faeff30c023cf6a701d9806e1
    paragraph_quote: (c) Notices to mortgagor In the case of lender paid mortgage insurance that is required
      in connection with a residential mortgage transaction— (1) not later than the date on which a loan
      commitment is made for the residential mortgage transaction, the prospective mortgagee shall provide
      to the prospective mortgagor a written notice— (A) that lender paid mortgage insurance differs from
      borrower paid mortgage insurance , in that lender paid mortgage insurance may not be canceled by
      the mortgagor, while borrower paid mortgage insurance could be cancelable by the mortgagor in accordance
      with section 4902(a) of this title , and could automatically terminate on the termination date in
      accordance with section 4902(b) of this title ; (B) that lender paid mortgage insurance —
    drafter_attestation: Verbatim subsection of 12 U.S.C. §4905 from Cornell LII snapshot 07eec8c1cca4541e;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: hpa-12usc-4905-i
  canonical_id: hpa-12usc-4905-i
  section: 12 U.S.C. §4905(i)
  description: '(i): (i) usually results in a residential mortgage having a higher interest rate than
    it would in the case of borrower paid mortgage insurance ; and (ii) terminates only when the residential
    mortgage is refinanced (under the meaning given such term in the regulations issued by the Board of
    Governors of t…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 U.S.C. §4905(c)(1)
    source_class: hpa-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/4905
    snapshot_id: 07eec8c1cca4541e
    fetched_at: '2026-05-24T00:47:09Z'
    content_hash: sha256:40c4f9654956d8f84567f447eac626d0b7bbbb7faeff30c023cf6a701d9806e1
    paragraph_quote: (i) usually results in a residential mortgage having a higher interest rate than
      it would in the case of borrower paid mortgage insurance ; and (ii) terminates only when the residential
      mortgage is refinanced (under the meaning given such term in the regulations issued by the Board
      of Governors of the Federal Reserve System to carry out the Truth in Lending Act ( 15 U.S.C. 1601
      et seq.)), paid off, or otherwise terminated; and (C) that lender paid mortgage insurance and borrower
      paid mortgage insurance both have benefits and disadvantages, including a generic analysis of the
      differing costs and benefits of a residential mortgage in the case lender paid mortgage insurance
      versus borrower paid mortgage insurance over a 10-year period, assuming prevailing interest and
      property appreciation rates; (D) that lender paid mortgage insurance may be tax-deductible for purposes
      of Federal income taxes, if the mortgagor itemizes expenses for that purpose; and (2) not later
      than 30 days after the termination date that would apply in the case of borrower paid mortgage insurance
      , the servicer shall provide to the mortgagor a written notice indicating that the mortgagor may
      wish to review financing options that could eliminate the requirement for private mortgage insurance
      in connection with the residential mortgage transaction.
    drafter_attestation: Verbatim subsection of 12 U.S.C. §4905 from Cornell LII snapshot 07eec8c1cca4541e;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: hpa-12usc-4905-d
  canonical_id: hpa-12usc-4905-d
  section: 12 U.S.C. §4905(d)
  description: '(d): (d) Standard forms The servicer of a residential mortgage transaction may develop
    and use a standardized form or forms for the provision of notices to the mortgagor, as required under
    subsection (c). ( Pub. L. 105–216, § 6 , July 29, 1998 , 112 Stat. 904 ; Pub. L. 106–569, title IV
    , §§ 403(c), 406(…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 U.S.C. §4905(c)(1)
    source_class: hpa-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/4905
    snapshot_id: 07eec8c1cca4541e
    fetched_at: '2026-05-24T00:47:09Z'
    content_hash: sha256:40c4f9654956d8f84567f447eac626d0b7bbbb7faeff30c023cf6a701d9806e1
    paragraph_quote: (d) Standard forms The servicer of a residential mortgage transaction may develop
      and use a standardized form or forms for the provision of notices to the mortgagor, as required
      under subsection (c). ( Pub. L. 105–216, § 6 , July 29, 1998 , 112 Stat. 904 ; Pub. L. 106–569,
      title IV , §§ 403(c), 406(a), Dec. 27, 2000 , 114 Stat. 2957 , 2959.)
    drafter_attestation: Verbatim subsection of 12 U.S.C. §4905 from Cornell LII snapshot 07eec8c1cca4541e;
      body isolated between nav and notes; substring-verified.
  judgment: false
