Homeowners Protection Act of 1998

Homeowners Protection Act of 1998 - Prescribes guidelines for mandatory termination of private mortgage insurance (PMI) for a residential mortgage when the principal balance is first scheduled to reach or actually reaches 80 percent of the original value of the property securing the mortgage loan, including: (1) a mortgagor's written cancellation request; (2) automatic termination; (3) final termination; (4) no further payments; and (5) return of unearned premiums. Cites exceptions for high risk loans. (Sec. 3) Requires the Comptroller General to detail for the Congress the volume and characteristics of residential mortgages and residential mortgage transactions that are exempt from the borrower cancellation and automatic termination requirements of this Act. (Sec. 4) Prescribes disclosure requirements for PMI amortization schedules, including for: (1) new mortgages at the time of transaction; (2) high-risk mortgages; (3) mortgage transactions entered into prior to enactment of this Act; (4) annual written updates; (5) PMI cancellation or termination; and (6) lender paid mortgage insurance. (Sec. 7) Prohibits fees for such disclosures. (Sec. 8) Subjects any servicer, mortgagee, or mortgage insurer in violation of this Act to civil liability for damages incurred by each mortgagor to whom the violation relates. (Sec. 9) Preempts: (1) State law governing PMI (except protected Stat…

Congressional Research Service · 1998-07-15