[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 318 Engrossed Amendment House (EAH)]


  2d Session

                                 S. 318

_______________________________________________________________________

                               AMENDMENTS
                In the House of Representatives, U. S.,

                                                         July 14, 1998.

    Resolved, That the bill from the Senate (S. 318) entitled ``An Act to 
require automatic cancellation and notice of cancellation rights with respect to 
private mortgage insurance which is required as a condition for entering into a 
residential mortgage transaction, to abolish the Thrift Depositor Protection 
Oversight Board, and for other purposes'', do pass with the following

                              AMENDMENTS:

(1)Page 1, line 5, strike [1997] and insert: 1998

(2)Page 12, after line 16 insert the following:
            (4) Gao report.--Not later than 2 years after the date of 
        the enactment of this Act, the Comptroller General of the 
        United States shall submit to the Congress a report describing 
        the volume and characteristics of residential mortgages and 
        residential mortgage transactions that, pursuant to paragraph 
        (1) of this subsection, are exempt from the application of 
        subsections (a) and (b). The report shall--
                    (A) determine the number or volume of such 
                mortgages and transactions compared to residential 
                mortgages and residential mortgage transactions that 
                are not classified as high-risk for purposes of 
                paragraph (1); and
                    (B) identify the characteristics of such mortgages 
                and transactions that result in their classification 
                (for purposes of paragraph (1)) as having high risks 
                associated with the extension of the loan and describe 
                such characteristics, including--
                            (i) the income levels and races of the 
                        mortgagors involved;
                            (ii) the amount of the downpayments 
                        involved and the downpayments expressed as 
                        percentages of the acquisition costs of the 
                        properties involved;
                            (iii) the types and locations of the 
                        properties involved;
                            (iv) the mortgage principal amounts; and
                            (v) any other characteristics of such 
                        mortgages and transactions that may contribute 
                        to their classification as high risk for 
                        purposes of paragraph (1), including whether 
                        such mortgages are purchase-money mortgages or 
                        refinancings and whether and to what extent 
                        such loans are low-documentation loans.

(3)Page 24, strike lines 15 through 23 and insert:
            (2) Protection of existing state laws.--
                    (A) In general.--The provisions of this Act do not 
                supersede protected State laws, except to the extent 
                that the protected State laws are inconsistent with any 
                provision of this Act, and then only to the extent of 
                the inconsistency.
                    (B) Inconsistencies.--A protected State law shall 
                not be considered to be inconsistent with a provision 
                of this Act if the protected State law--
                            (i) 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; or
                            (ii) 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.
                    (C) Protected state laws.--For purposes of this 
                paragraph, the term ``protected State law'' means a 
                State law--
                            (i) regarding any requirements relating to 
                        private mortgage insurance in connection with 
                        residential mortgage transactions;
                            (ii) that was enacted not later than 2 
                        years after the date of the enactment of this 
                        Act; and
                            (iii) that is the law of a State that had 
                        in effect, on or before January 2, 1998, any 
                        State law described in clause (i).

(4)Page 27, line 21 before ``Nothing'' insert:
    (a) PMI Not Required.--

(5)Page 27, after line 23 insert the following:
    (b) No Preclusion of Cancellation or Termination Agreements.--
Nothing in this Act shall be construed to preclude cancellation or 
termination, by agreement between a mortgagor and the holder of the 
mortgage, of a requirement for private mortgage insurance in connection 
with a residential mortgage transaction before the cancellation or 
termination date established by this Act for the mortgage.
            Attest:

                                                                          Clerk.