§4904 — Title 12 Banks and Banking | U.S. Code

Summary

When private mortgage insurance ends or is canceled, the loan servicer must send the borrower a written notice within 30 days saying the insurance has ended and that no more premiums, payments, or fees for that insurance are due. If the servicer decides the loan does not qualify for cancellation or termination under section 4902, it must send a written explanation and any appraisal results. For cancellations under 4902(a), the notice must be sent within 30 days after the later of the request under 4902(a)(1) or when the borrower supplies the evidence required by 4902(a)(3). For terminations under 4902(b), the notice must be sent within 30 days after the scheduled termination date.

Title 12, §4904

Banks and Banking — Source: USLM XML via OLRC

(a)Not later than 30 days after the date of cancellation or termination of a private mortgage insurance requirement in accordance with this chapter, the servicer shall notify the mortgagor in writing—

(1)that the private mortgage insurance has terminated and that the mortgagor no longer has private mortgage insurance; and

(2)that no further premiums, payments, or other fees shall be due or payable by the mortgagor in connection with the private mortgage insurance.

(b)(1)If a servicer determines that a mortgage did not meet the requirements for termination or cancellation of private mortgage insurance under subsection (a) or (b) of section 4902 of this title, the servicer shall provide written notice to the mortgagor of the grounds relied on to make the determination (including the results of any appraisal used to make the determination).

(2)Notice required by paragraph (1) shall be provided—

(A)with respect to cancellation of private mortgage insurance under section 4902(a) of this title, not later than 30 days after the later of—

(i)the date on which a request is received under section 4902(a)(1) of this title; or

(ii)the date on which the mortgagor satisfies any evidence and certification requirements under section 4902(a)(3) 11 See References in Text note below. of this title; and

(B)with respect to termination of private mortgage insurance under section 4902(b) of this title, not later than 30 days after the scheduled termination date.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 4902(a)(3) of this title, referred to in subsec. (b)(2)(A)(ii), was redesignated section 4902(a)(4) of this title by Pub. L. 106–569, title IV, § 404(1)(C), Dec. 27, 2000, 114 Stat. 2958.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective 1 year after July 29, 1998, see section 13 of Pub. L. 105–216, set out as a note under section 4901 of this title.

§4904 Notification Upon Cancellation or Termination