Page:United States Statutes at Large Volume 112 Part 1.djvu/932

 112 STAT. 906 PUBLIC LAW 105-216—JULY 29, 1998 not exceed the lesser of $500,000 or 1 percent of the gross revenues of the liable party, as determined by the court; (3) costs of the action; and (4) reasonable attorney fees, as determined by the court. (b) TIMING OF ACTIONS. —No action may be brought by a mortgagor under subsection (a) later than 2 years after the date of the discovery of the violation that is the subject of the action. (c) LIMITATIONS ON LIABILITY.— (1) IN GENERAL.— With respect to a residential mortgage transaction, the failure of a servicer to comply with the requirements of this Act due to the failure of a mortgage insurer or a mortgagee to comply with the requirements of this Act, shall not be construed to be a violation of this Act by the servicer. (2) RULE OF CONSTRUCTION.—Nothing in paragraph (1) shall be construed to impose any additional requirement or liability on a mortgage insurer, a mortgagee, or a holder of a residential mortgage. 12 USC 4908. SEC. 9. EFFECT ON OTHER LAWS AND AGREEMENTS. (a) EFFECT ON STATE LAW. — (1) IN GENERAL. — With respect to any residential mortgage or residential mortgage transaction consummated after the effective date of this Act, and except as provided in paragraph (2), the provisions of this Act shall supersede any provisions of the law of any State relating to requirements for obtaining or maintaining private mortgage insurance in connection with residential mortgage transactions, cancellation or automatic termination of such private mortgage insurance, any disclosure of information addressed by this Act, and any other matter specifically addressed by this Act. (2) PROTECTION OF EXISTING STATE LAWS. — (A) IN GENERAL. —The provisions of this Act do not supersede protected State laws, except to the extent that the protected State laws are inconsistent with any provision of this Act, and then only to the extent of the inconsistency. (B) INCONSISTENCIES.— A protected State law shall not be considered to be inconsistent with a provision of this Act if the protected State law— (i) requires termination of private mortgage insurance or other mortgage guaranty insurance— (I) at a date earlier than as provided in this Act; or (II) when a mortgage principal balance is achieved that is higher than as provided in this Act; or (ii) requires disclosure of information— (I) that provides more information than the information required by this Act; or (II) more often or at a date earlier than is required by this Act. (C) PROTECTED STATE LAWS.— For purposes of this paragraph, the term "protected State law" means a State law—

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