Page:United States Statutes at Large Volume 112 Part 1.djvu/925

 PUBLIC LAW 105-216—JULY 29, 1998 112 STAT. 899 interest created with respect to a single-family dwelling that is the primary residence of the mortgagor. (13) RESIDENTIAL MORTGAGE TRANSACTION. —The term s "residential mortgs^e transaction" means a transaction consummated on or after the date that is 1 year after the date of enactment of this Act, in which a mortgage, deed of trust, purchase money security interest arising under an installment sales contract, or equivalent consensual security interest is created or retained against a single-family dwelling that is the primary residence of the mortgagor to finance the acquisition, initial construction, or refinancing of that dwelling. (14) SERVICER. — The term "servicer" has the same meaning as in section 6(i)(2) of the Real Estate Settlement Procedures Act of 1974, with respect to a residential mortgage. (15) SINGLE-FAMILY DWELLING.— The term "single-family dwelling" mesins a residence consisting of 1 family dwelling unit. (16) TERMINATION DATE.— The term "termination date" means— (A) with respect to a fixed rate mortgage, the date on which the principal balance of the mortgage, 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 78 percent ' of the original value of the property securing the loan; and (B) with respect to an adjustable rate mortgage, the date on which the principal balance of the mortgage, based solely on amortization schedules for that mortgage, and irrespective of the outstanding balance for that mortgage on that date, is first scheduled to reach 78 percent of the original value of the property securing the loan. SEC. 3. TERMINATION OF PRIVATE MORTGAGE INSURANCE. 12 USC 4902. (a) BORROWER CANCELLATION. —^A requirement for private mortgage insurance in connection with a residential mortgage transaction shall be canceled on the cancellation date, if the mortgagor— (1) submits a request in writing to the servicer that cancellation be initiated; (2) has a good payment history with respect to the residential mortgage; sind (3) has satisfied any requirement of the holder of the mortgage (as of the date of a request under paragrajdi (1)) for— (A) evidence (of a type established in advance and made known to the mortgagor by the servicer promptly upon receipt of a request under paragraph (1)) that the v£due of the property securing the mortgage has not r declined beltjw the original value of the property; and (B) certification that the equity of the mortgagor in the residence securing the mortgage is unencumbered by a subordinate lien. (b) AUTOMATIC TERMINATION.—^A reqtiirement for private mortgage insa^ance in connection with a residential mortgage transacticHu shaii terminate with respect to iNi^nents for that mortgage insurance made by fee mortgager—

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