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
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 FDICs Public Information Center, 801 17th
Street, NW, Room100, Washington, DC 20434 (800-276-6003 or (703) 562-2200).