§4908 Effect on Other Laws and Agreements

Summary

For home loans closed after the law takes effect, the federal rules take priority over state rules about private mortgage insurance. That means federal law controls rules on getting or keeping private mortgage insurance, when it must end or is canceled automatically, required notices, and other things the federal rules cover. Some state laws are "protected" and still count unless they conflict with the federal rules. A protected law is one about private mortgage insurance that was passed no later than 2 years after July 29, 1998 and that was a law in a state on or before January 2, 1998. A protected state law is not treated as a conflict if it calls for ending insurance earlier or at a higher loan-balance point, or if it requires more or earlier disclosure than the federal rules. Federal rules also override any conflicting terms in mortgage servicing agreements made by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), or any private investor, note holder, or their successors.