HPA – What are the written notice and disclosure provisions for high risk residential mortgage transactions?

Compliance > Homeowners Protection Act
Q:  What are the written notice and disclosure provisions for high risk residential mortgage transactions? 
 
A:    The lender must provide written initial disclosures at con­summation for all high-risk residential mortgage transactions (as defined by the lender or Fannie Mae or Freddie Mac), that in no case will PMI be required beyond the midpoint of the amortization period of the loan, if the loan is current. More specific notice as to the 77 percent LTV termination standards for lender defined high-risk loans is not required under the Act.
 
 
This Q&A was based on information contained in the FDIC’s Compliance Examination Manual for Homeowner’s Protection Act – September 2015, which may be found here:  https://www.fdic.gov/regulations/compliance/manual/5/v-5.1.pdf
 

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