Which federal law mandates lenders to provide disclosures about private mortgage insurance?

The Homeowners Protection Act is the federal law that requires lenders to provide disclosures regarding private mortgage insurance (PMI). This legislation was enacted to ensure that borrowers are informed about the requirements and implications of PMI, which is typically required when a borrower makes a down payment of less than 20% on a home. By mandating these disclosures, the Act seeks to promote transparency in the mortgage process, allowing borrowers to understand their financial responsibilities associated with PMI, such as the cost and the conditions under which it can be canceled.

The other laws listed do not specifically address disclosures related to private mortgage insurance. The Truth in Lending Act primarily focuses on ensuring that borrowers are informed about the total costs of borrowing, including the annual percentage rate (APR) and other borrowing terms. The Equal Credit Opportunity Act is designed to prevent discrimination in lending practices, ensuring that all applicants are treated fairly. The Real Estate Settlement Procedures Act addresses the disclosure of settlement costs and processes during real estate transactions but does not specifically regulate PMI or require its disclosure.