MORTGAGE INSURANCE LIMITS
Synopsis of Bill as introduced:
Creates the Mortgage Insurance Limitation and Notification Act.
Prohibits mortgagees from requiring mortgage insurance after the
mortgagor has reduced the amount of the loan to 80% of the original
amount of the loan. Effective January 1, 1998.
SENATE AMENDMENT NO. 1.
Replaces the substance of the bill. Requires mortgagees to
notify mortgagors of the cost of private mortgage insurance, the
conditions under the insurance may be cancelled, and the procedures
required to effect a cancellation. Effective January 1, 1998.
HOUSE AMENDMENT NO. 1.
Revises the disclosure requirements. Requires mortgagees to
disclose in writing whether mortgage insurance is required and to
disclose the terms and conditions. Requires an annual notification
concerning the procedures to terminate mortgage insurance. Provides
that compliance with federal law concerning private mortgage insurance
shall be deemed compliance with this Act. Effective July 1, 1998.
HOUSE AMENDMENT NO. 2.
Provides that a mortgagee may modify its cancellation policy
applicable to a particular mortgage loan only upon the written
approval of the mortgagor.
FISCAL NOTE, H-AMS 1 & 2 (Dept. of Financial Inst.)
SB 1076, amended by H-ams 1 & 2 would have no fiscal impact.
HOUSING AFFORDABILITY NOTE, AMENDED
This bill will have no direct impact on the cost of construc-
ting, purchasing, owning or selling a single family residence.
Last action on Bill: PUBLIC ACT.............................. 90-0455
Last action date: 97-08-16
Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 2 SENATE - 1
END OF INQUIRY
Full Text Bill Status