Page:United States Statutes at Large Volume 112 Part 1.djvu/930

 112 STAT. 904 PUBLIC LAW 105-216-JULY 29, 1998 (b) NOTICE OF GROUNDS.— (1) IN GENERAL.—If a servicer determines that a mortgage did not meet the requirements for termination or cancellation of private mortgage insurance under subsection (a) or (b) of section 3, the servicer shall provide written notice to the mortgagor of the groiuids relied on to make the determination (including the results of any appraisal used to make the determination). (2) TIMING.—Notice required by paragraph (1) shall be provided— (A) with respect to cancellation of private mortgage insurance under section 3(a), not later than 30 days after the later of— (i) the date on which a request is received under section 3(a)(l); or (ii) the date on which the mortgagor satisfies any evidence and certification requirements under section 3(a)(3); and (B) with respect to termination of private mortgage insurance under section 3(b), not later than 30 days after the scheduled termination date. 12 USE 4905. SEC. 6. DISCLOSURE REQUIREMENTS FOR LENDER PAID MORTGAGE INSURANCE. (a) DEFINITIONS.—For purposes of this section— (1) the term "borrower paid mortgage insurance" means private mortgage insurance that is required in connection with a residential mortgage transaction, payments for which are made by the borrower; (2) the term "lender paid mortgage insurance" means private mortgage insurance that is required in connection with a residential mortgage transaction, payments for which are made by a person other than the borrower; and (3) the term "loan commitment" means a prospective mortgagee's written confirmation of its approval, including any applicable closing conditions, of the application of a prospective mortgagor for a residential mortgage loan. (b) EXCLUSION.—Sections 3 through 5 do not apply in the case of lender paid mortgage insurance. (c) NOTICES TO MORTGAGOR. —In the case of lender paid mortgage insurance that is required in connection with a residential mortgage or a residential mortgage transaction— (1) not later than the date on which a loan commitment is made for the residential mortgage transaction, the prospective mortgagee shall provide to the prospective mortgagor a written notice— (A) that lender paid mortgage insurance differs from borrower paid mortgage insurance, in that lender paid mortgage insurance may not be canceled by the mortgagor, while borrower paid mortgage insurance could be cancelable by the mortgagor in accordance with section 3<a) of this Act, and could automatically terminate on the termination date in accordance with section 3(b) of this Act; (B) that lender paid mortgage insurance—

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