Private Mortgage Insurance (PMI) Private insurers Private insurers Insures top portion of loan Insures top portion of loan Pay claim and take title or just pay losses Pay claim and take title or just pay losses Homeowners Protection Act Of 1998 requires lenders to cancel PMI automatically when L/V is 78% Homeowners Protection Act Of 1998 requires lenders to cancel PMI automatically when L/V is 78% After July 29, 1999 can be cancelled at 80% L/V of original property value After July 29, 1999 can be cancelled at 80% L/V of original property value