Page:United States Statutes at Large Volume 112 Part 1.djvu/928

 112 STAT. 902 PUBLIC LAW 105-216—JULY 29, 1998 (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. 12 USC 4903. SEC. 4. DISCLOSURE REQUIREMENTS. (a) DISCLOSURES FOR NEW MORTGAGES AT TIME OF TRANS- ACTION. — (1) DISCLOSURES FOR NON-EXEMPTED TRANSACTIONS. — In any case in which private mortgage insurance is required in connection with a residential mortgage or mortgage treinsaction (other than a mortgage or mortgage transaction described in section 3(f)(1)), at the time at which the transaction is consummated, the mortgagee shall provide to the mortgagor— (A) if the transaction relates to a fixed rate mortgage— (i) a written initial amortization schedule; and (ii) written notice— (I) that the mortgagor may c£incel the requirement in accordance with section 3(a) of this Act indicating the date on which the mortgagor may request csincellation, based solely on the initial Eimortization schedule; (II) that the mortgagor may request cancellation in accordance with section 3(a) of this Act earlier than provided for in the initial simortization schedule, based on actual payments; (III) that the requirement for private mortgage insurance will automatically terminate on the termination date in accordance with section 3(b) of this Act, and what that termination date is with respect to that mortgage; and (IV) that there axe exemptions to the right to cancellation and automatic termination of a requirement for private mortgage insurance in accordance with section 3(f) of this Act, and whether such an exemption applies at that time to that transaction; and (B) if the transaction relates to an adjustable rate mortgage, a written notice that— (i) the mortgagor may cancel the requirement in accordance with section 3(a) of this Act on the cancellation date, and that the servicer will notify the mortgagor when the cancellation date is reached; (ii) the requirement for private mortgage insurance will automatically terminate on the termination date, and that on the termination date, the mortgagor will be notified of the termination or that the requirement will be terminated as soon as the mortgagor is current on loan payments; and (iii) there are exemptions to the right of cancellation and automatic termination of a requirement for private mortgage insurance in accordance with section 3(f) of this Act, and whether such an exemption applies at that time to that transaction.

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