A bill to amend the Truth in Lending Act to require automatic cancellation and notice of cancellation rights with respect to private mortgage insurance which is required by a creditor as a condition for entering into a residential mortgage transaction, and for other purposes.
Homeowners Protection Act of 1998 - Prescribes guidelines for mandatory termination of private mortgage insurance (PMI) for a residential mortgage when the principal balance is first scheduled to reach or actually reaches 80 percent of the original value of the property securing the mortgage loan, including: (1) a mortgagor's written cancellation request; (2) automatic termination; (3) final termination; (4) no further payments; and (5) return of unearned premiums. Cites exceptions for high risk loans.
(Sec. 3) Requires the Comptroller General to detail for the Congress the volume and characteristics of residential mortgages and residential mortgage transactions that are exempt from the borrower cancellation and automatic termination requirements of this Act.
(Sec. 4) Prescribes disclosure requirements for PMI amortization schedules, including for: (1) new mortgages at the time of transaction; (2) high-risk mortgages; (3) mortgage transactions entered into prior to enactment of this Act; (4) annual written updates; (5) PMI cancellation or termination; and (6) lender paid mortgage insurance.
(Sec. 7) Prohibits fees for such disclosures.
(Sec. 8) Subjects any servicer, mortgagee, or mortgage insurer in violation of this Act to civil liability for damages incurred by each mortgagor to whom the violation relates.
(Sec. 9) Preempts: (1) State law governing PMI (except protected State laws that are not inconsistent with this Act); and (2) servicing agreements entered into by Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, or any private investor or note holder.
Declares that a protected State law shall not be construed as inconsistent with this Act if it requires: (1) termination of PMI or other mortgage guaranty insurance at an earlier date or when a lower mortgage loan principal balance is achieved; or (2) disclosure of information that provides more information than required by this Act, or more often or at a date earlier than required by this Act.
(Sec. 10) Prescribes enforcement guidelines for Federal banking agencies.
(Sec. 11) States that this Act does not preclude an agreement between a mortgagor and mortgage holder to cancel or terminate a requirement for PMI in connection with a residential mortgage transaction before the cancellation or termination date established by this Act for the mortgage.
(Sec. 12) Amends the Higher Education Act of 1965, with respect to student assistance programs, to consider to be an institution of higher education any nonprofit institution whose primary function is to provide health care educational services (or an affiliate with the power, by contract or ownership interest, to direct or cause the direction of the institution's management or policies) that files for bankruptcy under chapter 11 (Reorganization) of the bankruptcy code between July 1, and December 31, 1998.
(Sec. 14) Abolishes the Thrift Depositor Protection Oversight Board. Provides for the continuation of Resolution Funding Corporation orders, resolutions, determinations, and regulations. Transfers to the Secretary of the Treasury the authority of the Thrift Depositor Protection Oversight Board, and the duties of the Resolution Funding Corporation.
Amends the Resolution Trust Corporation Completion Act to remove the Chairperson of the Thrift Depositor Protection Oversight Board from mandatory membership on the Affordable Housing Advisory Board. Repeals the directive that such Board conduct its meetings where substantial residential property assets of the Federal Deposit Insurance Corporation or the Resolution Trust Corporation are located.
Referred to the House Committee on Ways and Means.
Message on Senate action sent to the House.
Considered under suspension of the rules. (consideration: CR H5428-5437)
DEBATE - The House proceeded with forty minutes of debate.
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.
On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.
Motion to reconsider laid on the table Agreed to without objection.
Message on House action received in Senate and at desk: House amendments to Senate bill.
Measure laid before Senate by unanimous consent.
Resolving differences -- Senate actions: Senate concurred in the House amendments with an amendment(SP 3171) by Unanimous Consent.
Senate concurred in the House amendments with an amendment(SP 3171) by Unanimous Consent.
Message on Senate action sent to the House.
Mr. Leach asked unanimous consent that the House agree to the Senate amendments to the House amendments.
Enacted as Public Law 105-216
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Resolving differences -- House actions: On motion that the House agree to the Senate amendments to the House amendments Agreed to without objection.(consideration: CR H5727)
On motion that the House agree to the Senate amendments to the House amendments Agreed to without objection. (consideration: CR H5727)
Motion to reconsider laid on the table Agreed to without objection.
Presented to President.
Presented to President.
Signed by President.
Signed by President.
Became Public Law No: 105-216.
Became Public Law No: 105-216.