[Weekly Compilation of Presidential Documents Volume 34, Number 31 (Monday, August 3, 1998)]
[Pages 1536-1537]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Statement on Signing the Homeowners Protection Act of 1998

July 29, 1998

    Today I am pleased to sign into law S. 318, the Homeowners 
Protection Act, which will save many American families thousands of 
dollars over the lifetime of their home mortgages. This bill will enable 
homeowners to cancel private mortgage insurance (``PMI'') that they no 
longer need and make sure they receive full disclosure of their right to 
cancel.
    Mortgage insurance has helped expand homeownership by allowing 
homeowners to make lower downpayments. But far too many homeowners 
continue to pay for mortgage insurance long after they have built enough 
equity so that the lender has little risk of loss. This bill would 
address that problem by making sure that homeowners have the right to 
cancel PMI, or by making that cancellation automatic, when homeowners 
build up enough equity in their homes. For a family that buys a $160,000 
home, this bill would ensure savings of $1,600 if they do not move or 
refinance for 15 years.
    Since I took office, homeownership has climbed to its highest rate 
in American history. But now is not a time to rest. I have set a 
national goal of helping 8 million new families move into homes of their 
own by the year 2000. Lowering the cost of homeownership is one more way 
we are helping America's working families. That is why I am pleased to 
sign this homeowner- and consumer-friendly legislation.

Note: S. 318, approved July 29, was assigned Public Law No. 105-216.

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