Because it ignores reality. The HPA's automatic termination (12 U.S.C. §4902(b)) uses the amortization schedule as written at closing — if your home doubled in value or you've paid extra principal, the automatic date doesn't care. It's the legal backstop, not the smart exit. The smart exits are the ones you initiate: 80% of original value by request, or 75–80% of current value once the loan is 2+ years old.
Your PMI disclosure from closing lists it, or compute it: find the month your scheduled balance crosses 78% of the original property value. Our calculator shows this date alongside both request-based tests — for most homeowners the request path beats the automatic date by 2 to 6 years, which at $200/month is $4,800–$14,400 in premiums you don't owe.
Only one thing legally: the loan must be current. If you're behind on the 78% date, termination happens once you catch up. If the date passes, you're current, and PMI is still on your statement — that's a servicer error; cite §4902(b) in writing and request retroactive cancellation with a refund of unearned premiums.
Find your date — and whether you can beat it — free →