Page:United States Statutes at Large Volume 112 Part 1.djvu/929

 PUBLIC LAW 105-216—JULY 29, 1998 112 STAT. 903 (2) DISCLOSURES FOR EXCEPTED TRANSACTIONS. — In the case of a mortgage or mortgage transaction described in section 3(f)(1), at the time at which the transaction is consummated, the mortgagee shall provide written notice to the mortgagor that in no case may private mortgage insurance be required beyond the date that is the midpoint of the amortization period of the loan, if the mortgagor is current on pa5anents required by the terms of the residential mortgage. (3) ANNUAL DISCLOSURES. —I f private mortgage insurance is required in connection with a residential mortgage transaction, the servicer shall disclose to the mortgagor in each such transaction in an annual written statement— (A) the rights of the mortgagor under this Act to cancellation or termination of the private mortgage insurance requirement; and (B) an address and telephone number that the mortgagor may use to contact the servicer to determine whether the mortgagor may cancel the private mortgage insurance. (4) APPLICABILITY.—Paragraphs (1) through (3) shall apply with respect to each residential mortgage transaction consummated on or after the date that is 1 year after the date of enactment of this Act. (b) DISCLOSURES FOR EXISTING MORTGAGES.— I f private mortgage insurance was required in connection with a residential mortgage entered into at any time before the effective date of this Act, the servicer shall disclose to the mortgagor in each such transaction in an annual written statement— (1) that the private mortgage insurance may, under certain circumstances, be canceled by the mortgagor (with the consent of the mortgagee or in accordsince with applicable State law); and (2) an address and telephone number that the mortgagor may use to contact the servicer to determine whether the mortgagor may cancel the private mortgage insurance. (c) INCLUSION IN OTHER ANNUAL NOTICES. — The information and disclosures required under subsection (b) and paragraphs (1)(B) and (3) of subsection (a) may be provided on the annual disclosure relating to the escrow account made as required under the Real Estate Settlement Procedures Act of 1974, or as part of the annual disclosure of interest payments made pursuant to Internal Revenue Service regulations, and on a form promulgated by the Internal Revenue Service for that purpose. (d) STANDARDIZED FORMS. —The mortgagee or servicer may use standardized forms for the provision of disclosures required under this section. SEC. 5. NOTIFICATION UPON CANCELLATION OR TERMINATION. 12 USC 4904. (a) IN GENERAL. —Not later than 30 days after the date of Deadline, cancellation or termination of a private mortgage insurance requirement in accordance with this Act, the servicer shall notify the mortgagor in writing— (1) that the private mortgage insurance has terminated and that the mortgagor no longer has private mortgage insurance; and (2) that no further premiums, payments, or other fees shall be due or payable by the mortgagor in connection with the private mortgage insurance.

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