(a) Effect on State law.
(1) With respect to any residential mortgage
or residential mortgage transaction consummated after the effective
date of this Act, and except as provided in paragraph (2), the provisions
of this Act 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 Act, and any other matter specifically
addressed by this Act.
(2) Protection of existing state laws.
(A) The provisions
of this Act do not supersede protected State laws, except to the extent
that the protected State laws are inconsistent with any provision
of this Act, and then only to the extent of the inconsistency.
(B) A protected State
law shall not be considered to be inconsistent with a provision of
this Act 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 Act; or
(II) when
a mortgage principal balance is achieved that is higher than as provided
in this Act; or
(ii) requires disclosure of information—
(I) that provides more information than the
information required by this Act; or
(II) more often or at a date earlier than
is required by this Act.
(C) 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 the date of the enactment
of this Act; 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).
6-1818
(b) Effect on other agreements. The
provisions of this Act 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).
[12 USC 4908.]
