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Federal rules

PMI removal rules under the Homeowners Protection Act

Learn the national PMI cancellation rules: borrower requested cancellation at 80 percent loan to value, automatic termination at 78 percent of original value, and final termination at the midpoint of your loan.

What the Homeowners Protection Act covers

The Homeowners Protection Act of 1998 is a federal law, 12 U.S.C. sections 4901 to 4910. It sets national rules for cancelling private mortgage insurance on many conventional loans originated on or after July 29, 1999. It is not a state by state program. If your loan is a typical conventional first mortgage on a primary residence, these rules are the starting point, even if your servicer is in another state.

Borrower requested cancellation at 80 percent

You can ask your servicer to cancel PMI when the unpaid principal reaches 80 percent of the original value of the home, based on actual payments. You generally must be current, have a good payment history, and have no subordinate liens. The property value should not have declined. Many servicers also accept a current appraisal if home prices have risen. That appraisal path is servicer or investor practice. It is not a fourth automatic test in the Act.

The good payment history test

For a borrower request, a good payment history usually means no payment 30 days late in the past 12 months and no payment 60 days late in the past 24 months, and you are current when you ask. Automatic termination at 78 percent and midpoint still require you to be current. A late payment can delay those dates.

Automatic termination at 78 percent

If you do not request cancellation earlier, PMI must terminate automatically when the principal balance reaches 78 percent of the original value according to the amortization schedule, provided you are current. This protection does not depend on a new appraisal. It is tied to original value.

Final termination at the midpoint

Even if loan to value is still high, PMI must end at the midpoint of the amortization period if you are current. On a 30 year loan that is the 15 year mark. On a 15 year loan it is 7 years and 6 months. This is a backstop so PMI cannot last for the entire original term on a covered loan.

What the Act does not cover

FHA mortgage insurance, VA funding fees, and USDA guarantee fees are not PMI under this Act. Lender paid PMI is treated differently. Second homes and investment properties often fall outside the core consumer protections. Always match the rule set to your loan type. The free check tells you which path applies before you pay.

Common questions

The Homeowners Protection Act of 1998, 12 U.S.C. sections 4901 to 4910. That is the federal rule set for many conventional PMI loans. It is not 15 U.S.C. 1632.

If you reach the midpoint of the original loan term and you are still paying PMI, it must end automatically if you are current. On a 30 year loan that is year 15. The midpoint follows the original term, not a refinance clock.

A second mortgage or HELOC on the same property. Servicers often treat that as a block on cancellation until it is released or they get extra documents. Tell the check the truth if you have one.

Ask for the reason in writing. Common issues are payment history, a drop in value, or a second lien. A denial is not automatically reversed by a complaint. The CFPB complaint system is a later option if they keep charging after they should have stopped. We do not file for you.

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Last updated: September 14, 2026