Which of the following is a benefit provided by the Homeowners Protection Act?

The Homeowners Protection Act, also known as the PMI Cancellation Act, specifically addresses issues related to private mortgage insurance (PMI). One of the main benefits it provides is protection for homeowners against excessive PMI costs. This legislation requires lenders to cancel PMI on certain loans when the homeowner's equity reaches a specific level (usually 20% equity in the home). This regulation ensures that homeowners do not continue paying for insurance that is no longer necessary, thereby helping to reduce their monthly mortgage payments and protect them from being financially burdened by unnecessary costs.

In contrast, the other options do not align with the provisions of the Homeowners Protection Act. For instance, the Act does not directly influence mortgage interest rates, reduce closing costs, or increase loan amounts. Its primary focus is on regulating PMI to enhance homeowner financial protections.