12 U.S.C. §4908 — Effect on other laws

hpa-12usc-4908

HPA preemption section. General federal preemption of State PMI requirements, cancellation/automatic termination, and disclosure law; preservation of more-borrower-favorable "protected State laws" (enacted within 2 years of July 29, 1998, by States with pre-existing PMI law as of January 2, 1998); supersession of conflicting Fannie Mae, Freddie Mac, and private-investor servicing agreements.

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source:
  type: regulation
  id: hpa-12usc-4908
  authority: 12 U.S.C. §4908 — Effect on other laws
  description: |
    HPA preemption section. General federal preemption of State
    PMI requirements, cancellation/automatic termination, and
    disclosure law; preservation of more-borrower-favorable
    "protected State laws" (enacted within 2 years of July 29, 1998,
    by States with pre-existing PMI law as of January 2, 1998);
    supersession of conflicting Fannie Mae, Freddie Mac, and
    private-investor servicing agreements.
obligations:
  - id: hpa-12usc-4908-a-federal-preemption-of-state-pmi-law
    canonical_id: hpa-12usc-4908-a-federal-preemption-of-state-pmi-law
    section: 12 U.S.C. §4908(a) — Federal preemption of State PMI law
    description: |
      With respect to any residential mortgage or residential mortgage
      transaction consummated after the HPA effective date (July 29,
      1999), [LENDER] must apply HPA in place of State law on
      requirements for obtaining or maintaining PMI, cancellation or
      automatic termination of PMI, any disclosure addressed by
      chapter 49, and any other matter specifically addressed by
      chapter 49 — EXCEPT where a §4908(a)(2)(C) "protected State
      law" provides more borrower-favorable termination triggers
      (earlier-date or higher-balance termination) or more borrower-
      favorable disclosures (more information, more often, or earlier).
    type: monitor
    audit_question: For every residential mortgage [LENDER] originates or services that is subject to HPA, can [LENDER] evidence that PMI requirements, cancellation/automatic termination handling, and HPA disclosures are administered under HPA — and that any applicable §4908(a)(2)(C) protected State law (more-favorable-to-borrower termination triggers or disclosures) is also applied where it exists?
    program_review: Does the program account for §4908(a) preemption — administering PMI requirements, cancellation/automatic termination, and disclosures under HPA for post-July-29-1999 loans, WHILE also applying any §4908(a)(2)(C) protected State law that is more borrower-favorable (earlier/higher-balance termination or more/earlier disclosures)?
    file_review: Spot-check loans in states with protected PMI laws; confirm HPA is applied and that more-borrower-favorable protected State law is layered in where it exists. The compliance person judges the more-favorable determination.
    judgment: true
    feeds: []
    workflow_phase: servicing
    owner_role: compliance_officer
    secondary_owner_role: default_servicing_analyst
    cadence: continuous
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - hpa
      - preemption
      - state-law
      - servicing
      - promoted
    primary_source:
      tier: 1
      authority: 12 U.S.C. §4908(a)(1)
      source_class: hpa-statute
      source_url: https://www.law.cornell.edu/uscode/text/12/4908
      snapshot_id: 506303758e9dbb54
      fetched_at: '2026-05-24T00:47:11Z'
      content_hash: sha256:ab1acf1b0f2b759fd3c3787ba1e979e0ef403923c1f73a82bea0e950d6fb3583
      paragraph_quote: With respect to any residential mortgage or residential mortgage transaction consummated after the effective date of this chapter, and except as provided in paragraph (2), the provisions of this chapter 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 chapter, and any other matter specifically addressed by this chapter.
      drafter_attestation: |
        Copied verbatim from snapshot 506303758e9dbb54 (content.txt) at
        2026-05-23T01:00Z. Substring is the full §4908(a)(1) operative
        federal-preemption rule; the (a)(2) protected-State-law
        preservation is paraphrased in description.
    promoted_at: '2026-05-24T00:54:55+00:00'
    promoted_from: hpa-12usc-4908-roundb-v1.yaml
  - id: hpa-12usc-4908-b-supersede-fannie-freddie-servicing-agreements
    canonical_id: hpa-12usc-4908-b-supersede-fannie-freddie-servicing-agreements
    section: 12 U.S.C. §4908(b) — HPA supersedes conflicting Fannie/Freddie servicing agreements
    description: |
      [LENDER] must recognize that HPA supersedes any conflicting
      provision in any agreement relating to the servicing of a
      residential mortgage loan entered into by Fannie Mae, Freddie
      Mac, or any private investor or note holder (or any successors
      thereto). [LENDER] may not rely on an investor servicing
      contract term that conflicts with HPA cancellation, termination,
      notice, or fee-prohibition obligations.
    type: monitor
    audit_question: For every loan [LENDER] services for Fannie Mae, Freddie Mac, or any private investor or note holder, can [LENDER] evidence that servicing-agreement provisions are interpreted to defer to HPA where they conflict — particularly on PMI cancellation/termination triggers, post-termination notification timing, unearned-premium refunds, and the §4906 no-fee rule?
    program_review: Does the program account for §4908(b) — interpreting investor servicing-agreement provisions (Fannie Mae, Freddie Mac, private investors/note holders) to defer to HPA where they conflict, particularly on cancellation/termination triggers, post-termination notice timing, unearned-premium refunds, and the §4906 no-fee rule?
    file_review: Review servicing-agreement-driven PMI handling for any investor term applied in conflict with HPA; confirm HPA controlled where conflicts existed.
    judgment: false
    feeds: []
    workflow_phase: servicing
    owner_role: compliance_officer
    secondary_owner_role: default_servicing_analyst
    cadence: continuous
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - hpa
      - preemption
      - servicing-agreements
      - fannie-freddie
      - servicing
      - promoted
    primary_source:
      tier: 1
      authority: 12 U.S.C. §4908(b)
      source_class: hpa-statute
      source_url: https://www.law.cornell.edu/uscode/text/12/4908
      snapshot_id: 506303758e9dbb54
      fetched_at: '2026-05-24T00:47:11Z'
      content_hash: sha256:ab1acf1b0f2b759fd3c3787ba1e979e0ef403923c1f73a82bea0e950d6fb3583
      paragraph_quote: The provisions of this chapter shall supersede any conflicting provision contained in any agreement relating to the servicing of a residential mortgage loan entered into by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, or any private investor or note holder (or any successors thereto).
      drafter_attestation: |
        Copied verbatim from snapshot 506303758e9dbb54 (content.txt) at
        2026-05-23T01:00Z. Substring is the full §4908(b) operative
        supersede-servicing-agreements rule; no paraphrasing.
    promoted_at: '2026-05-24T00:54:55+00:00'
    promoted_from: hpa-12usc-4908-roundb-v1.yaml
_promotion_history:
  - promoted_at: '2026-05-24T00:54:55+00:00'
    candidate_path: obligations\_remediation\_round_b_drafts\hpa-12usc-4908-roundb-v1.yaml
    candidates_promoted: 2
    candidates_skipped_existing: 0

Verbatim regulatory text (2)

Verbatim provisions from 12 U.S.C. §4908 — Effect on other laws — 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. §4908(a) — Federal preemption of State PMI law

With respect to any residential mortgage or residential mortgage transaction consummated after the effective date of this chapter, and except as provided in paragraph (2), the provisions of this chapter 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 chapter, and any other matter specifically addressed by this chapter.

Source: 12 U.S.C. §4908(a)(1) · source URL · snapshot 506303758e9dbb54

12 U.S.C. §4908(b) — HPA supersedes conflicting Fannie/Freddie servicing agreements

The provisions of this chapter shall supersede any conflicting provision contained in any agreement relating to the servicing of a residential mortgage loan entered into by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, or any private investor or note holder (or any successors thereto).

Source: 12 U.S.C. §4908(b) · source URL · snapshot 506303758e9dbb54