had private mortgage insurance. In 1999 the Homeowners Protection Act of 1998 came into effect as a federal law of the United States, which requires automatic termination of mortgage insurance in certain cases for homeowners when the loan-to-value on the home reaches 78%; prior to the law, homeowners had limited recourse to cancel and by one estimate, 250,000 homeowners were paying for unnecessary mortgage insurance. Similar state laws existed in eight states at the time of its passage; in 2000, a lawsuit by Eliot Spitzer resulted in refunds due to mortgage insurers lack of compliance with a 1984 New York state law which required insurers to stop charging homeowners after a certain point. These laws may continue to apply; for example, the New York law provides "broader protection". For Federal Housing Administration-insured loans, the cancellation requirements may be more difficult. See also Payment protection insurance Lenders mortgage insurance Canada Mortgage and Housing Corporation Credit default swap FHA insured loan Home equity protection References