[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4435 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4435

  To amend the Homeowners Protection Act of 1998 to increase consumer 
  protections relating to cancellation of private mortgage insurance.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 6, 1998

 Mr. LaFalce introduced the following bill; which was referred to the 
              Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
  To amend the Homeowners Protection Act of 1998 to increase consumer 
  protections relating to cancellation of private mortgage insurance.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Private Mortgage Insurance 
Cancellation Simplification Act of 1998''.

SEC. 2. APPLICABILITY TO HIGH-RISK LOANS.

    (a) In General.--Section 3 of the Homeowners Protection Act of 1998 
(Public Law 105-216) is amended by striking subsection (f).
    (b) Conforming Amendments.--Section 4(a) of the Homeowners 
Protection Act of 1998 (Public Law 105-216) is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``(other than a mortgage or mortgage 
                transaction described in section 3(f)(1))'';
                    (B) in subparagraph (A)(ii)--
                            (i) in subclause (II), by inserting ``and'' 
                        after the semicolon at the end; and
                            (ii) by striking subclause (IV); and
                    (C) in subparagraph (B)--
                            (i) in clause (i), by inserting ``and'' 
                        after the semicolon at the end;
                            (ii) in clause (ii), by striking ``; and'' 
                        and inserting a period; and
                            (iii) by striking clause (iii);
            (2) by striking paragraph (2);
            (3) in paragraph (4), by striking ``through (3)'' and 
        inserting ``and (2)''; and
            (4) by redesignating paragraphs (3) and (4), as so amended, 
        as paragraphs (2) and (3), respectively.

SEC. 3. PROTECTION OF STATE LAWS.

    Section 9 of the Homeowners Protection Act of 1998 (Public Law 105-
216) is amended by striking subsection (a) and inserting the following 
new subsection:
    ``(a) Effect on State Law.--
            ``(1) In general.--This Act does not annul, alter, or 
        affect, or exempt any person subject to the provisions of this 
        Act from complying with, the laws of any State regarding any 
        requirements relating to private mortgage insurance in 
        connection with residential mortgage transactions, except to 
        the extent that such State laws are inconsistent with any 
        provision of this Act, and then only to the extent of the 
        inconsistency.
            ``(2) Inconsistencies.--A State law shall not be considered 
        to be inconsistent with a provision of this Act if the State 
        law--
                    ``(A) requires termination of private mortgage 
                insurance or other mortgage guaranty insurance--
                            ``(i) at a date earlier than as provided in 
                        this Act; or
                            ``(ii) when a mortgage principal balance is 
                        achieved that is higher than as provided in 
                        this Act;
                    ``(B) requires disclosure of information--
                            ``(i) that provides more information than 
                        the information required by this Act; or
                            ``(ii) more often or at a date earlier than 
                        is required by this Act; or
                    ``(C) otherwise provides greater protection for the 
                private mortgage insurance consumer.''.
                                 <all>