Page:United States Statutes at Large Volume 112 Part 1.djvu/923

 PUBLIC LAW 105-216-^JULY 29, 1998 112 STAT. 897 Public Law 105-216 105th Congress 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 July 29, 1998 into a residential mortgage transaction, to abolish the Thrift Depositor Protection is~318i Oversight Board, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. Homeowners SECTION 1. SHORT TITLE; TABLE OF CONTENTS. S^^S"*^ ^^ (a) SHORT TITLE.— This Act may be cited as the "Homeowners 12 USC 4901 Protection Act of 1998". note. (b) TABLE OF CONTENTS.— The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Definitions. Sec. 3. Termination of private mortgage insurance. Sec. 4. Disclosure requirements. Sec. 5. Notification upon cancellation or termination. Sec. 6. Disclosure requirements for lender paid mortgage insurance. Sec. 7. Fees for disclosures. Sec. 8. Civil liability. Sec. 9. Effect on other laws and agreements. Sec. 10. Enforcement. Sec. 11. Construction. Sec. 12. Amendment to Higher Education Act of 1965. Sec. 13. Effective date. Sec. 14. Abolishment of the Thrift Depositor Protection Oversight Board. SEC. 2. DEFINITIONS. 12 USC 4901. In this Act, the following definitions shall apply: (1) ADJUSTABLE RATE MORTGAGE. —The term "adjustable rate mortgage" means a residential mortgage that has an interest rate that is subject to change. (2) CANCELLATION DATE.— The term "cancellation date" means— (A) with respect to a fixed rate mortgage, at the option of the mortgagor, the date on which the principal balance of the mortgage— (i) based solely on the initial amortization schedule for that mortgage, and irrespective of the outstanding balance for that mortgage on that date, is first scheduled to reach 80 percent of the original value of the property securing the login; or (ii) based solely on actual payments, reaches 80 percent of the original value of the property securing the loan; and (B) with respect to an adjustable rate mortgage, at the option of the mortgagor, the date on which the principal balance of the mortgage—

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