According to the Homeowners Protection Act, what should happen if a borrower disagrees with the termination of PMI?

Under the Homeowners Protection Act, if a borrower disagrees with the termination of Private Mortgage Insurance (PMI), they have the right to appeal the decision made by the lender. This is significant because it ensures that borrowers have a mechanism to challenge the lender's assessment regarding their loan-to-value ratio or other factors that may have influenced the decision to maintain PMI. The act acknowledges that borrowers may possess additional information or insights that could affect the PMI termination status.

This option underscores the proactive role that borrowers can take in managing their mortgage insurance costs, as they can present their case and potentially lead the lender to reconsider the termination if valid grounds for appeal exist. The inclusion of an appeals process promotes fairness and transparency in the termination of PMI, aligning with the intent of the law to protect homeowners’ interests.