Page:United States Statutes at Large Volume 114 Part 5.djvu/944

 114 STAT. 2958 PUBLIC LAW 106-569—DEC. 27, 2000 (2) in subsection (d), by inserting "transaction" after "residential mortgage". SEC. 404. CANCELLATION RIGHTS AFTER CANCELLATION DATE. Section 3 of the Homeowners Protection Act of 1998 (12 U.S.C. 4902) is amended— (1) in subsection (a)— (A) in the matter preceding paragraph (1), by inserting after "cancellation date" the following: "or any later date that the mortgagor fulfills all of the requirements under paragraphs (1) through (4)"; (B) in paragraph (2), by striking "and" at the end; (C) by redesignating paragraph (3) as paragraph (4); and (D) by inserting after paragraph (2) the following new paragraph: "(3) is current on the payments required by the terms of the residential mortgage transaction; and"; and (2) in subsection (e)(1)(B) (as so redesignated by the preceding provisions of this title), by striking "subsection (a)(3)" and inserting "subsection (a)(4)". SEC. 405. CLARIFICATION OF CANCELLATION AND TERMINATION ISSUES AND LENDER PAID MORTGAGE INSURANCE DISCLOSURE REQUIREMENTS. (a) GOOD PAYMENT HISTORY.—Section 2(4) of the Homeowners Protection Act of 1998 (12 U.S.C. 4901(4)) is amended— (1) in subparagraph (A)— (A) by inserting "the later of (i)" before "the date"; and (B) by inserting ", or (ii) the date that the mortgagor submits a request for cancellation under section 3(a)(1)" before the semicolon; and (2) in subparagraph (B)— (A) by inserting "the later of (i)" before "the date"; and (B) by inserting ", or (ii) the date that the mortgagor submits a request for cancellation under section 3(a)(1)" before the period at the end. (b) AUTOMATIC TERMINATION.— Paragraph (2) of section 3(b) of the Homeowners Protection Act of 1998 (12 U.S.C. 4902(b)(2)) is amended to read as follows: "(2) if the mortgagor is not current on the termination date, on the first day of the first month beginning after the date that the mortgagor becomes current on the payments required by the terms of the residential mortgage transaction.". (c) PREMIUM PAYMENTS. — Section 3 of the Homeowners Protection Act of 1998 (12 U.S.C. 4902) is amended by adding at the end the following new subsection: "(h) ACCRUED OBLIGATION FOR PREMIUM PAYMENTS. — The cancellation or termination under this section of the private mortgage insurance of a mortgagor shall not affect the rights of any mortgagee, servicer, or mortgage insurer to enforce any obligation of such mortgagor for premium payments accrued prior to the date on which such cancellation or termination occurred.".

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