Home > 106th Congressional Bills > H.R. 3637 (ih) To amend the Homeowners Protection Act of 1998 to make certain technical corrections. [Introduced in House] ...

H.R. 3637 (ih) To amend the Homeowners Protection Act of 1998 to make certain technical corrections. [Introduced in House] ...


Google
 
Web GovRecords.org


106th CONGRESS

  2d Session

                               H. R. 3637

_______________________________________________________________________

                                 AN ACT

    To amend the Homeowners Protection Act of 1998 to make certain 
                         technical corrections.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
106th CONGRESS
  2d Session
                                H. R. 3637

_______________________________________________________________________

                                 AN ACT


 
    To amend the Homeowners Protection Act of 1998 to make certain 
                         technical corrections.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Private Mortgage Insurance Technical 
Corrections and Clarification Act''.

SEC. 2. CHANGES IN AMORTIZATION SCHEDULE.

    (a) Treatment of Adjustable Rate Mortgages.--The Homeowners 
Protection Act of 1998 (12 U.S.C. 4901 et seq.) is amended--
            (1) in section 2--
                    (A) in paragraph (2)(B)(i), by striking 
                ``amortization schedules'' and inserting ``the 
                amortization schedule then in effect'';
                    (B) in paragraph (16)(B), by striking 
                ``amortization schedules'' and inserting ``the 
                amortization schedule then in effect'';
                    (C) by redesignating paragraphs (6) through (16) 
                (as amended by the preceding provisions of this 
                paragraph) as paragraphs (8) through (18), 
                respectively; and
                    (D) by inserting after paragraph (5) the following 
                new paragraph:
            ``(6) Amortization schedule then in effect.--The term 
        `amortization schedule then in effect' means, with respect to 
        an adjustable rate mortgage, a schedule established at the time 
        at which the residential mortgage transaction is consummated 
        or, if such schedule has been changed or recalculated, is the 
        most recent schedule under the terms of the note or mortgage, 
        which shows--
                    ``(A) the amount of principal and interest that is 
                due at regular intervals to retire the principal 
                balance and accrued interest over the remaining 
                amortization period of the loan; and
                    ``(B) the unpaid balance of the loan after each 
                such scheduled payment is made.''; and
            (2) in section 3(f)(1)(B)(ii), by striking ``amortization 
        schedules'' and inserting ``the amortization schedule then in 
        effect''.
    (b) Treatment of Balloon Mortgages.--Paragraph (1) of section 2 of 
the Homeowners Protection Act of 1998 (12 U.S.C. 4901(1)) is amended by 
adding at the end the following new sentence: ``A residential mortgage 
that (A) does not fully amortize over the term of the obligation, and 
(B) contains a conditional right to refinance or modify the unamortized 
principal at the maturity date of the term, shall be considered to be 
an adjustable rate mortgage for purposes of this Act.''.
    (c) Treatment of Loan Modifications.--
            (1) In general.--Section 3 of the Homeowners Protection Act 
        of 1998 (12 U.S.C. 4902) is amended--
                    (A) by redesignating subsections (d) through (f) as 
                subsections (e) through (g), respectively; and
                    (B) by inserting after subsection (c) the following 
                new subsection:
    ``(d) Treatment of Loan Modifications.--If a mortgagor and 
mortgagee (or holder of the mortgage) agree to a modification of the 
terms or conditions of a loan pursuant to a residential mortgage 
transaction, the cancellation date, termination date, or final 
termination shall be recalculated to reflect the modified terms and 
conditions of such loan.''.
            (2) Conforming amendments.--Section 4(a) of the Homeowners 
        Protection Act of 1998 (12 U.S.C. 4903(a)) is amended--
                    (A) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``section 3(f)(1)'' and 
                        inserting ``section 3(g)(1)'';
                            (ii) in subparagraph (A)(ii)(IV), by 
                        striking ``section 3(f)'' and inserting 
                        ``section 3(g)''; and
                            (iii) in subparagraph (B)(iii), by striking 
                        ``section 3(f)'' and inserting ``section 
                        3(g)''; and
                    (B) in paragraph (2), by striking ``section 
                3(f)(1)'' and inserting ``section 3(g)(1)''.

SEC. 3. DELETION OF AMBIGUOUS REFERENCES TO RESIDENTIAL MORTGAGES.

    (a) Termination of Private Mortgage Insurance.--Section 3 of the 
Homeowners Protection Act of 1998 (12 U.S.C. 4902) is amended--
            (1) in subsection (c), by inserting ``on residential 
        mortgage transactions'' after ``imposed''; and
            (2) in subsection (g) (as so redesignated by section 
        2(c)(1)(A) of this Act)--
                    (A) in paragraph (1), in the matter preceding 
                subparagraph (A), by striking ``mortgage or'';
                    (B) in paragraph (2), by striking ``mortgage or''; 
                and
                    (C) in paragraph (3), by striking ``mortgage or'' 
                and inserting ``residential mortgage or residential''.
    (b) Disclosure Requirements.--Section 4 of the Homeowners 
Protection Act of 1998 (12 U.S.C. 4903(a)) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``mortgage or'' the first 
                        place it appears; and
                            (ii) by striking ``mortgage or'' the second 
                        place it appears and inserting ``residential''; 
                        and
                    (B) in paragraph (2), by striking ``mortgage or'' 
                and inserting ``residential'';
            (2) in subsection (c), by striking ``paragraphs (1)(B) and 
        (3) of subsection (a)'' and inserting ``subsection (a)(3)''; 
        and
            (3) in subsection (d), by inserting before the period at 
        the end the following: ``, which disclosures shall relate to 
        the mortgagor's rights under this Act''.
    (c) Disclosure Requirements for Lender-Paid Mortgage Insurance.--
Section 6 of the Homeowners Protection Act of 1998 (12 U.S.C. 4905) is 
amended--
            (1) in subsection (c)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``a residential mortgage or''; and
                    (B) in paragraph (2), by inserting ``transaction'' 
                after ``residential mortgage''; and
            (2) in subsection (d), by inserting ``transaction'' after 
        ``residential mortgage''.

SEC. 4. CANCELLATION RIGHTS AFTER CANCELLATION DATE.

    Section 3 of the Homeowners Protection Act of 1998 (12 U.S.C. 4902) 
is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                inserting after ``cancellation date'' the following: 
                ``or any later date that the mortgagor fulfills all of 
                the requirements under paragraphs (1) through (4)'';
                    (B) in paragraph (2), by striking ``and'' at the 
                end;
                    (C) by redesignating paragraph (3) as paragraph 
                (4); and
                    (D) by inserting after paragraph (2) the following 
                new paragraph:
            ``(3) is current on the payments required by the terms of 
        the residential mortgage transaction; and''; and
            (2) in subsection (e)(1)(B) (as so redesignated by section 
        2(c)(1)(A) of this Act), by striking ``subsection ``(a)(3)'' 
        and inserting ``subsection (a)(4)''.

SEC. 5. CLARIFICATION OF CANCELLATION AND TERMINATION ISSUES AND LENDER 
              PAID MORTGAGE INSURANCE DISCLOSURE REQUIREMENTS.

    (a) Good Payment History.--Section 2(4) of the Homeowners 
Protection Act of 1998 (12 U.S.C. 4901(4)) is amended--
            (1) in subparagraph (A)--
                    (A) by inserting ``the later of (i)'' before ``the 
                date''; and
                    (B) by inserting ``, or (ii) the date that the 
                mortgagor submits a request for cancellation under 
                section 3(a)(1)'' before the semicolon; and
            (2) in subparagraph (B)--
                    (A) by inserting ``the later of (i)'' before ``the 
                date''; and
                    (B) by inserting ``, or (ii) the date that the 
                mortgagor submits a request for cancellation under 
                section 3(a)(1)'' before the period at the end.
    (b) Automatic Termination.--Paragraph (2) of section 3(b) of the 
Homeowners Protection Act of 1998 (12 U.S.C. 4902(b)(2)) is amended to 
read as follows:
            ``(2) if the mortgagor is not current on the termination 
        date, on the first day of the first month beginning after the 
        date that the mortgagor becomes current on the payments 
        required by the terms of the residential mortgage 
        transaction.''.
    (c) Premium Payments.--Section 3 of the Homeowners Protection Act 
of 1998 (12 U.S.C. 4902) is amended by adding at the end the following 
new subsection:
    ``(h) Accrued Obligation for Premium Payments.--The cancellation or 
termination under this section of the private mortgage insurance of a 
mortgagor shall not affect the rights of any mortgagee, servicer, or 
mortgage insurer to enforce any obligation of such mortgagor for 
premium payments accrued prior to the date on which such cancellation 
or termination occurred.''.

SEC. 6. DEFINITIONS.

    (a) Refinanced.--Section 6(c)(1)(B)(ii) of the Homeowners 
Protection Act of 1998 (12 U.S.C. 4905(c)(1)(B)(ii)) is amended by 
inserting after ``refinanced'' the following: ``(under the meaning 
given such term in the regulations issued by the Board of Governors of 
the Federal Reserve System to carry out the Truth in Lending Act (15 
U.S.C. 1601 et seq.))''.
    (b) Midpoint of the Amortization Period.--Section 2 of the 
Homeowners Protection Act of 1998 (12 U.S.C. 4901) is amended by 
inserting after paragraph (6) (as added by section 2(a)(1)(D) of this 
Act) the following new paragraph:
            ``(7) Midpoint of the amortization period.--The term 
        ``midpoint of the amortization period'' means, with respect to 
        a residential mortgage transaction, the point in time that is 
        halfway through the period that begins upon the first day of 
        the amortization period established at the time a residential 
        mortgage transaction is consummated and ends upon the 
        completion of the entire period over which the mortgage is 
        scheduled to be amortized.''.
    (c) Original Value.--Section 2(12) of the Homeowners Protection Act 
of 1998 (12 U.S.C. 4901(10)) (as so redesignated by section 2(a)(1)(C) 
of this Act) is amended--
            (1) by inserting ``transaction'' after ``a residential 
        mortgage''; and
            (2) by adding at the end the following new sentence: ``In 
        the case of a residential mortgage transaction for refinancing 
        the principal residence of the mortgagor, such term means only 
        the appraised value relied upon by the mortgagee to approve the 
        refinance transaction.''.
    (d) Principal Residence.--Section 2 of the Homeowners Protection 
Act of 1998 (12 U.S.C. 4901) is amended--
            (1) in paragraph (14) (as so redesignated by section 
        2(a)(1)(C) of this Act) by striking ``primary'' and inserting 
        ``principal''; and
            (2) in paragraph (15) (as so redesignated by section 
        2(a)(1)(C) of this Act) by striking ``primary'' and inserting 
        ``principal''.

            Passed the House of Representatives May 23, 2000.

            Attest:

                                                                 Clerk.

Pages: 1

Other Popular 106th Congressional Bills Documents:

1 H.R. 598 (ih) To require the Federal Communications Commission to eliminate from its regulations the restrictions on the cross-ownership of broadcasting stations and newspapers. [Introduced in House] ...
2 S. 3194 (enr) To designate the facility of the United States Postal Service located at 431 North George Street in Millersville, Pennsylvania, as the ``Robert S. Walker Post Office''. [Enrolled bill] ...
3 H.Res. 251 (ih) Expressing the sense of the House of Representatives with regard to the escalating violence in East Timor. [Introduced in House] ...
4 H.Res. 279 (eh) [Engrossed in House] ...
5 H.Res. 626 (rh) Waiving points of order against the conference report to accompany the [Reported in House] ...
6 H.J.Res. 34 (enr) Congratulating and commending the Veterans of Foreign Wars. [Enrolled bill] ...
7 H.R. 775 (eh) To establish certain procedures for civil actions brought for damages relating to the failure of any device or system to process or otherwise deal with the transition from the year 1999 to the year 2000, and for other purposes. [Engrossed in...
8 S. 243 (es) To authorize the construction of the Perkins County Rural Water System and authorize financial assistance to the Perkins County Rural Water System, Inc., a nonprofit corporation, in the planning and construction of the water supply system, and...
9 H.R. 4831 (ih) To redesignate the facility of the United States Postal Service located at 2339 North California Street in Chicago, Illinois, as the ``Roberto Clemente Post Office''. [Introduced in House] ...
10 H.Con.Res. 381 (rfs) Expressing the sense of the Congress that there should be established a National Health Center Week to raise awareness of health services provided by community, migrant, and homeless health centers. [Referred in Senate] ...
11 S. 1277 (is) To amend title XIX of the Social Security Act to establish a new prospective payment system for Federally-qualified health centers and rural health clinics. [Introduced in Senate] ...
12 H.R. 1000 (rfs) To amend title 49, United States Code, to reauthorize programs of the Federal Aviation Administration, and for other purposes. [Referred in Senate] ...
13 H.R. 433 (enr) To restore the management and personnel authority of the Mayor of the District of Columbia. [Enrolled bill] ...
14 H.R. 1497 (eh) To amend the Small Business Act with respect to the women's business center program. [Engrossed in House] ...
15 S. 2687 (is) Regarding the sale and transfer of Moskit anti-ship missiles by the Russian Federation. [Introduced in Senate] ...
16 H.R. 5542 (ih) To amend the Internal Revenue Code of 1986 to provide tax relief. [Introduced in House] ...
17 S. 3206 (is) To amend the Omnibus Crime Control and Safe Streets Act of 1968 to provide additional protections to victims of rape. [Introduced in Senate] ...
18 H.R. 761 (ih) To amend the Internal Revenue Code of 1986 to repeal the inclusion in gross income of Social Security benefits. [Introduced in House] ...
19 H.R. 4038 (ih) To amend the Foreign Assistance Act of 1961 to address the issue of mother-to-child transmission of human immunodeficiency virus (HIV) in Africa, Asia, and Latin America. [Introduced in House] ...
20 H.R. 4318 (eh) To establish the Red River National Wildlife Refuge. [Engrossed in House] ...
21 H.R. 1979 (ih) To amend the Internal Revenue Code of 1986 to clarify the application of the excise tax imposed on arrow components. [Introduced in House] ...
22 H.Con.Res. 396 (enr) [Enrolled bill] ...
23 S. 486 (is) To provide for the punishment of methamphetamine laboratory operators, provide additional resources to combat methamphetamine production, trafficking, and abuse in the United States, and for other purposes. [Introduced in Senate] ...
24 H.R. 514 (rh) To amend the Communications Act of 1934 to strengthen and clarify prohibitions on electronic eavesdropping, and for other purposes. [Reported in House] ...
25 S. 2068 (is) To prohibit the Federal Communications Commission from establishing rules authorizing the operation of new, low power FM radio stations. [Introduced in Senate] ...
26 H.R. 98 (rh) To amend chapter 443 of title 49, United States Code, to extend the aviation war risk insurance program. [Reported in House] ...
27 S. 438 (is) To provide for the settlement of the water rights claims of the Chippewa Cree Tribe of the Rocky Boy's Reservation, and for other purposes. [Introduced in Senate] ...
28 S. 3011 (rs) To increase, effective as of December 1, 2000, the rates of compensation for veterans with service-connected disabilities and the rates of dependency and indemnity compensation for the survivors of certain disabled veterans. [Reported in Sena...
29 S.Res. 378 (ats) Honoring the members of the crew of the guided missile destroyer U.S.S. [Agreed to Senate] ...
30 H.R. 197 (enr) To designate the facility of the United States Postal Service at 410 North 6th Street in Garden City, Kansas, as the ``Clifford R. Hope Post Office''. [Enrolled bill] ...


Other Documents:

106th Congressional Bills Records and Documents

GovRecords.org presents information on various agencies of the United States Government. Even though all information is believed to be credible and accurate, no guarantees are made on the complete accuracy of our government records archive. Care should be taken to verify the information presented by responsible parties. Please see our reference page for congressional, presidential, and judicial branch contact information. GovRecords.org values visitor privacy. Please see the privacy page for more information.
House Rules:

104th House Rules
105th House Rules
106th House Rules

Congressional Bills:

104th Congressional Bills
105th Congressional Bills
106th Congressional Bills
107th Congressional Bills
108th Congressional Bills

Supreme Court Decisions

Supreme Court Decisions

Additional

1995 Privacy Act Documents
1997 Privacy Act Documents
1994 Unified Agenda
2004 Unified Agenda

Congressional Documents:

104th Congressional Documents
105th Congressional Documents
106th Congressional Documents
107th Congressional Documents
108th Congressional Documents

Congressional Directory:

105th Congressional Directory
106th Congressional Directory
107th Congressional Directory
108th Congressional Directory

Public Laws:

104th Congressional Public Laws
105th Congressional Public Laws
106th Congressional Public Laws
107th Congressional Public Laws
108th Congressional Public Laws

Presidential Records

1994 Presidential Documents
1995 Presidential Documents
1996 Presidential Documents
1997 Presidential Documents
1998 Presidential Documents
1999 Presidential Documents
2000 Presidential Documents
2001 Presidential Documents
2002 Presidential Documents
2003 Presidential Documents
2004 Presidential Documents

Home Executive Judicial Legislative Additional Reference About Privacy