Page:United States Statutes at Large Volume 112 Part 1.djvu/931

 **eti ' t-*?-,!^;* PUBLIC LAW 105-216-JULY 29, 1998 112 STAT. 905 (i) usually results in a residential mortgage having a higher interest rate than it would in the case of borrower paid mortgage insurance; and (ii) terminates only when the residential mortgage is refinanced, paid off, or otherwise terminated; and (C) that lender paid mortgage insurance and borrower paid mortgage insurance both have benefits and disadvantages, including a generic analysis of the differing costs and benefits of a residential mortgage in the case lender paid mortgage insurance versus borrower paid mortgage insurance over a 10-year period, assuming prevafling interest and property appreciation rates; (D) that lender paid mortgage insurance may be taxdeductible for purposes of Federal income taxes, if the mortgagor itemizes expenses for that purpose; and (2) not later than 30 days after the termination date that Deadline, would apply in the case of borrower paid mortgage insurance, the servicer shall provide to the mortgagor a written notice indicating that the mortgagor may wish to review financing options that could eliminate the requirement for private mortgage insurance in connection with the residential mortgage, (d) STANDARD FORMS.— The servicer of a residential mortgage may develop and use a standardized form or forms for the provision of notices to the mortgagor, as required under subsection (c). SEC. 7. FEES FOR DISCLOSURES. 12 USC 4906. No fee or other cost may be imposed on any mortgagor with respect to the provision of any notice or information to the mortgagor pursuant to this Act. SEC. 8. CIVIL LIABILITY. 12 USC 4907. (a) IN GENERAL.— Any servicer, mortgagee, or mortgage insurer that violates a provision of this Act shall be liable to each mortgagor to whom the violation relates for— (1) in the case of an action by an individual, or a class action in which the liable party is not subject to section 10, any actual damages sustained by the mortgagor as a result of the violation, including interest (at a rate determined by the court) on the amount of actual damages, accruing from the date on which the violation commences; (2) in the case of— (A) an action by an individual, such statutory damages as the court may allow, not to exceed $2,000; and (B) in the case of a class action— (i) in which the liable party is subject to section 10, such amount as the court may allow, except that the total recovery under this subparagraph in any class action or series of class actions arising out of the same violation by the same liable party shall not exceed the lesser of $500,000 or 1 percent of the net worth of the liable party, as determined by the court; and (ii) in which the liable party is not subject to section 10. such amount as the court may allow, not to exceed $1,000 as to each member of the class, except that the total recovery under this subparagraph in any class action or series of class actions arising out of the Same violation by the same liable party shall

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