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Inactive Financial Institution Letters

Homeowners Protection Act Of 1998

FIL-50-99
June 4, 1999

 

TO: CHIEF EXECUTIVE OFFICER and COMPLIANCE OFFICER
SUBJECT: Homeowners Protection Act of 1998 to Take Effect July 29, 1999

The attached Homeowners Protection Act of 1998, which takes effect July 29, 1999, requires financial institutions to cancel private mortgage insurance (PMI) under certain circumstances. The Act also requires financial institutions to provide borrowers with a number of disclosures at the time of loan origination, yearly while mortgage insurance is in effect, and when the PMI terminates.

While each federal banking agency will be in charge of enforcing this law, no agency has been authorized to write implementing regulations. The agencies are currently working on interagency examination procedures that will provide guidance to examiners and financial institutions.

Attached is a copy of the Act (Pub. L. No. 105-216). The Act may also be accessed from the Internet at www.loc.gov (under "Thomas," then "Public Laws By Law Number").

For more information, please call Lisa Bailey McQueen, Review Examiner in the Division of Compliance and Consumer Affairs (DCA), on (202) 942-3061; Ken Baebel, Senior Review Examiner in DCA, on (202) 942-3086; or Robert Patrick, Counsel in the Legal Division, on (202) 898-3757.

 

Ronald F. Bieker
Acting Director

Attachment: An electronic version of the attachment is available over the Internet from the Library of Congress' Thomas server as a pdf file. (148Kb PDF file - PDF help or hard copy)

Distribution: FDIC-Supervised Banks (Commercial and Savings)

NOTE: Paper copies of FDIC financial institutions letters may be obtained through the FDICís Public Information Center, 801 17th Street, NW, Room100, Washington, DC 20434 (800-276-6003 or (703) 562-2200).

Last Updated 07/17/1999 communications@fdic.gov