12 U.S.C. § 4908 : US Code - Section 4908: Effect on other laws and agreements

Search 12 U.S.C. § 4908 : US Code - Section 4908: Effect on other laws and agreements

(a) Effect on State law
(1) In general
With respect to any residential mortgage or residential
mortgage transaction consummated after the effective date of this
chapter, and except as provided in paragraph (2), the provisions
of this chapter shall supersede any provisions of the law of any
State relating to requirements for obtaining or maintaining
private mortgage insurance in connection with residential
mortgage transactions, cancellation or automatic termination of
such private mortgage insurance, any disclosure of information
addressed by this chapter, and any other matter specifically
addressed by this chapter.
(2) Protection of existing State laws
(A) In general
The provisions of this chapter do not supersede protected
State laws, except to the extent that the protected State laws
are inconsistent with any provision of this chapter, and then
only to the extent of the inconsistency.
(B) Inconsistencies
A protected State law shall not be considered to be
inconsistent with a provision of this chapter if the protected
State law -
(i) requires termination of private mortgage insurance or
other mortgage guaranty insurance -
(I) at a date earlier than as provided in this chapter;
or
(II) when a mortgage principal balance is achieved that
is higher than as provided in this chapter; or
(ii) requires disclosure of information -
(I) that provides more information than the information
required by this chapter; or
(II) more often or at a date earlier than is required by
this chapter.
(C) Protected State laws
For purposes of this paragraph, the term "protected State
law" means a State law -
(i) regarding any requirements relating to private mortgage
insurance in connection with residential mortgage
transactions;
(ii) that was enacted not later than 2 years after July 29,
1998; and
(iii) that is the law of a State that had in effect, on or
before January 2, 1998, any State law described in clause
(i).
(b) Effect on other agreements
The provisions of this chapter shall supersede any conflicting
provision contained in any agreement relating to the servicing of a
residential mortgage loan entered into by the Federal National
Mortgage Association, the Federal Home Loan Mortgage Corporation,
or any private investor or note holder (or any successors thereto).