Senate Sponsors: SEVERNS. House Sponsors: BUGIELSKI-CAPPARELLI-MCKEON-SAVIANO-MCAULIFFE Short description: MORTGAGE INSURANCE LIMITS Synopsis of Bill as introduced: Creates the Mortgage Insurance Limitation and Notification Act. Prohibits mortgagees from requiring mortgage insurance after the mortgagor has reduced the amount of the loan to 80% of the original amount of the loan. Effective January 1, 1998. SENATE AMENDMENT NO. 1. Replaces the substance of the bill. Requires mortgagees to notify mortgagors of the cost of private mortgage insurance, the conditions under the insurance may be cancelled, and the procedures required to effect a cancellation. Effective January 1, 1998. HOUSE AMENDMENT NO. 1. Revises the disclosure requirements. Requires mortgagees to disclose in writing whether mortgage insurance is required and to disclose the terms and conditions. Requires an annual notification concerning the procedures to terminate mortgage insurance. Provides that compliance with federal law concerning private mortgage insurance shall be deemed compliance with this Act. Effective July 1, 1998. HOUSE AMENDMENT NO. 2. Provides that a mortgagee may modify its cancellation policy applicable to a particular mortgage loan only upon the written approval of the mortgagor. FISCAL NOTE, H-AMS 1 & 2 (Dept. of Financial Inst.) SB 1076, amended by H-ams 1 & 2 would have no fiscal impact. HOUSING AFFORDABILITY NOTE, AMENDED This bill will have no direct impact on the cost of construc- ting, purchasing, owning or selling a single family residence. Last action on Bill: PUBLIC ACT.............................. 90-0455 Last action date: 97-08-16 Location: Senate Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 2 SENATE - 1 END OF INQUIRY Full Text Bill Status