12 U.S.C. §4902 — Cancellation and termination of private mortgage insurance (Homeowners Protection Act)

hpa-12usc-4901-4

12 U.S.C. §4902 — Cancellation and termination of private mortgage insurance (Homeowners Protection Act).

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Verbatim provisions from 12 U.S.C. §4902 — Cancellation and termination of private mortgage insurance (Homeowners Protection Act) — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

12 U.S.C. §4902 — Cancellation and termination of private mortgage insurance (Homeowners Protection Act)

8 sections · 7,867 characters of verbatim text. Open a section to read it, or . Every section below is in the page source whether open or closed.

aBorrower cancellationA requirement for private mortgage insurance…1,056 ch
(a) Borrower cancellationA requirement for private mortgage insurance in connection with a residential mortgage transaction shall be canceled on the cancellation date or any later date that the mortgagor fulfills all of the requirements under paragraphs (1) through (4), if the mortgagor— (1) submits a request in writing to the servicer that cancellation be initiated; (2) has a good payment history with respect to the residential mortgage; (3) is current on the payments required by the terms of the residential mortgage transaction; and (4) has satisfied any requirement of the holder of the mortgage (as of the date of a request under paragraph (1)) for— (A) evidence (of a type established in advance and made known to the mortgagor by the servicer promptly upon receipt of a request under paragraph (1)) that the value of the property securing the mortgage has not declined below the original value of the property; and (B) certification that the equity of the mortgagor in the residence securing the mortgage is unencumbered by a subordinate lien.
bAutomatic terminationA requirement for private mortgage insurance…605 ch
(b) Automatic terminationA requirement for private mortgage insurance in connection with a residential mortgage transaction shall terminate with respect to payments for that mortgage insurance made by the mortgagor— (1) on the termination date if, on that date, the mortgagor is current on the payments required by the terms of the residential mortgage transaction; or (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.
cFinal termination If a requirement for private mortgage insurance…442 ch
(c) Final termination If a requirement for private mortgage insurance is not otherwise canceled or terminated in accordance with subsection (a) or (b), in no case may such a requirement be imposed on residential mortgage transactions beyond the first day of the month immediately following the date that is the midpoint of the amortization period of the loan if the mortgagor is current on the payments required by the terms of the mortgage.
dTreatment of loan modifications If a mortgagor and mortgagee (or…345 ch
(d) Treatment of loan modifications If a mortgagor and mortgagee (or holder of the mortgage) agree to a modification of the terms or conditions of a loan pursuant to a residential mortgage transaction, the cancellation date, termination date, or final termination shall be recalculated to reflect the modified terms and conditions of such loan.
eNo further paymentsNo payments or premiums may be required from…766 ch
(e) No further paymentsNo payments or premiums may be required from the mortgagor in connection with a private mortgage insurance requirement terminated or canceled under this section— (1) in the case of cancellation under subsection (a), more than 30 days after the later of— (A) the date on which a request under subsection (a)(1) is received; or (B) the date on which the mortgagor satisfies any evidence and certification requirements under subsection (a)(4); (2) in the case of termination under subsection (b), more than 30 days after the termination date or the date referred to in subsection (b)(2), as applicable; and (3) in the case of termination under subsection (c), more than 30 days after the final termination date established under that subsection.
fReturn of unearned premiums (1) In general Not later than 45 days…720 ch
(f) Return of unearned premiums (1) In general Not later than 45 days after the termination or cancellation of a private mortgage insurance requirement under this section, all unearned premiums for private mortgage insurance shall be returned to the mortgagor by the servicer. (2) Transfer of funds to servicer Not later than 30 days after notification by the servicer of termination or cancellation of private mortgage insurance under this chapter with respect to a mortgagor, a mortgage insurer that is in possession of any unearned premiums of that mortgagor shall transfer to the servicer of the subject mortgage an amount equal to the amount of the unearned premiums for repayment in accordance with paragraph (1).
gExceptions for high risk loans (1) In generalThe termination and…3,571 ch
(g) Exceptions for high risk loans35 ch
(g) Exceptions for high risk loans
1In generalThe termination and cancellation provisions in…1,618 ch
(1) In generalThe termination and cancellation provisions in subsections (a) and (b) do not apply to any residential mortgage transaction that, at the time at which the residential mortgage transaction is consummated, has high risks associated with the extension of the loan— (A) as determined in accordance with guidelines published by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, in the case of a mortgage loan with an original principal balance that does not exceed the applicable annual conforming loan limit for the secondary market established pursuant to section 1454(a)(2) of this title, so as to require the imposition or continuation of a private mortgage insurance requirement beyond the terms specified in subsection (a) or (b) of this section; or (B) as determined by the mortgagee in the case of any other mortgage, except that termination shall occur— (i) with respect to a fixed rate mortgage, on the date on which the principal balance of the mortgage, based solely on the initial amortization schedule for that mortgage, and irrespective of the outstanding balance for that mortgage on that date, is first scheduled to reach 77 percent of the original value of the property securing the loan; and (ii) with respect to an adjustable rate mortgage, on the date on which the principal balance of the mortgage, based solely on the amortization schedule then in effect for that mortgage, and irrespective of the outstanding balance for that mortgage on that date, is first scheduled to reach 77 percent of the original value of the property securing the loan.
2Termination at midpoint A private mortgage insurance requirement…201 ch
(2) Termination at midpoint A private mortgage insurance requirement in connection with a residential mortgage transaction described in paragraph (1) shall terminate in accordance with subsection (c).
3Rule of construction Nothing in this subsection may be construed…277 ch
(3) Rule of construction Nothing in this subsection may be construed to require a residential mortgage or residential mortgage transaction described in paragraph (1)(A) to be purchased by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.
4GAO reportNot later than 2 years after July 29, 1998, the…1,440 ch
(4) GAO reportNot later than 2 years after July 29, 1998, the Comptroller General of the United States shall submit to the Congress a report describing the volume and characteristics of residential mortgages and residential mortgage transactions that, pursuant to paragraph (1) of this subsection, are exempt from the application of subsections (a) and (b). The report shall— (A) determine the number or volume of such mortgages and transactions compared to residential mortgages and residential mortgage transactions that are not classified as high-risk for purposes of paragraph (1); and (B) identify the characteristics of such mortgages and transactions that result in their classification (for purposes of paragraph (1)) as having high risks associated with the extension of the loan and describe such characteristics, including— (i) the income levels and races of the mortgagors involved; (ii) the amount of the downpayments involved and the downpayments expressed as percentages of the acquisition costs of the properties involved; (iii) the types and locations of the properties involved; (iv) the mortgage principal amounts; and (v) any other characteristics of such mortgages and transactions that may contribute to their classification as high risk for purposes of paragraph (1), including whether such mortgages are purchase-money mortgages or refinancings and whether and to what extent such loans are low-documentation loans.
hAccrued obligation for premium payments The cancellation or…362 ch
(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.

Source: 12 U.S.C. §4902 — Cancellation and termination of private mortgage insurance (Homeowners Protection Act) · source URL · snapshot ddeb6e1aa27fda1e

12 U.S.C. §4902 note — source credit and editorial notes (not statute text)

(Pub. L. 105–216, § 3, July 29, 1998, 112 Stat. 899; Pub. L. 106–569, title IV, §§ 402(a)(2), (c)(1), 403(a), 404, 405(b), (c), Dec. 27, 2000, 114 Stat. 2956–2958.)

Source: 12 U.S.C. §4902 note — source credit and editorial notes (not statute text) · source URL · snapshot ddeb6e1aa27fda1e

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