Homeowners Protection Act

The Homeowners Protection Act (HPA) is a federal law that protects homeowners from defaulting on their mortgages. The HPA requires lenders to provide homeowners with a loan counseling session before closing on a loan. The counseling session must cover topics such as the borrower's ability to repay the loan, the costs of homeownership, and the risks of default.

The HPA also requires lenders to provide homeowners with a written disclosure statement that includes information about the loan, such as the interest rate, monthly payments, and fees. The disclosure statement must also include information about the borrower's rights and responsibilities under the loan.

The HPA is designed to help homeowners understand the terms of their mortgages and make informed decisions about whether or not to take out a loan. The HPA also helps to protect homeowners from defaulting on their mortgages by providing them with information about the risks of default.

The HPA is a valuable resource for homeowners. By understanding the terms of their mortgages and the risks of default, homeowners can make informed decisions about their financial future.