§4908 Effect on other laws and agreements

Summary

Federal rules in this chapter take priority over state rules about private mortgage insurance for home loans made after the chapter goes into effect. That means federal rules control things like when private mortgage insurance is required, when it can be canceled or ends automatically, and what information must be given to borrowers. State laws that are "protected" still apply unless they conflict with the federal rules. A protected state law is one about private mortgage insurance that was passed no later than two years after July 29, 1998, and the state had some such law on or before January 2, 1998. A protected law is not treated as conflicting if it gives stronger borrower protections, such as earlier cancellation, cancellation at a higher remaining balance, or more or earlier disclosures. The chapter also overrides conflicting terms in mortgage-servicing contracts involving Fannie Mae, Freddie Mac, or private investors or note holders.