§4908 Effect on Other Laws and Agreements

Summary

Federal rules replace state rules for any home mortgage made after the law took effect when those state rules deal with private mortgage insurance. That includes rules about when PMI is required or kept, when it must be canceled or ends automatically, what information must be given to borrowers, and any other topic the federal rules cover. Some older state laws keep effect unless they conflict with the federal rules. A state law is "protected" only if it was passed no later than 2 years after July 29, 1998, and the state already had a PMI law on or before January 2, 1998. A protected state law is not treated as conflicting if it requires earlier cancellation, allows cancellation at a higher loan balance, or requires more or earlier disclosure than the federal rules. The federal rules also override any conflicting terms in mortgage servicing agreements made by Fannie Mae, Freddie Mac, or private investors or note holders.