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90_SB1076ham001
LRB9003310JScwam
1 AMENDMENT TO SENATE BILL 1076
2 AMENDMENT NO. . Amend Senate Bill 1076 on page 1 by
3 replacing line 6 with the following:
4 "Section 5. Application. This Act applies to mortgages
5 entered into on or after the effective date of this Act and
6 only to the principal single family residence of the
7 mortgagor.
8 Section 10. Definitions. For the purpose of this Act:";
9 and
10 on page 1, line 15, by replacing "transaction" with
11 "transaction, the premiums of which are paid by the
12 mortgagor"; and
13 by replacing lines 23 through 29 on page 1, all of page 2,
14 and lines 1 through 5 on page 3 with the following:
15 "Section 15. Transaction disclosure. After July 1,
16 1998, if a person enters into a transaction to obtain a
17 mortgage for his or her principal residence and private
18 mortgage insurance may be required in connection with that
19 transaction, the mortgagee shall disclose in writing all of
20 the following:
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1 (1) Whether private mortgage insurance will be
2 required to be obtained or maintained with respect to the
3 mortgage.
4 (2) The period during which the insurance shall be
5 required to be in effect.
6 (3) The conditions under which the mortgagor may
7 cancel the insurance.
8 (4) That the mortgagor will be notified not less
9 than annually of an address and telephone number that may
10 be used to contact the mortgagee to determine whether or
11 not the insurance may be terminated and, if the insurance
12 may be terminated, the conditions and procedures for
13 termination.
14 Section 20. Annual notification statement. After July
15 1, 1998, in addition to the transaction disclosure
16 requirement set forth in Section 10 and within 30 days after
17 the end of the calendar year, the mortgagee shall inform the
18 mortgagor in writing of the procedure to cancel the private
19 mortgage insurance together with the telephone number and
20 address. The annual statement required by this Section may
21 be printed on or included with any other annual statement
22 that is required by any federal or State law to be made by
23 the mortgagee to the mortgagor.
24 Nothing contained in this Section shall prevent a
25 mortgagee from waiving any or all of the conditions of its
26 cancellation policy in effect when the mortgage loan is
27 originated or from modifying its cancellation policy
28 applicable to a particular mortgage loan from time to time.
29 If a cancellation policy is modified, the mortgagor shall be
30 notified within 30 days of material changes to the policy.
31 Section 30. Federal law. If federal law is enacted
32 governing or otherwise regulating private mortgage insurance,
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1 a mortgagee who is governed by the provisions of this Act may
2 have the option to comply with the federal law, and
3 compliance with the federal law by the mortgagee shall be
4 deemed compliance with this Act."; and
5 on page 3, line 9, by changing "January" to "July".