Approved May 27, 1999.

CHAPTER 634
(House Bill 427)

AN ACT concerning

Mortgage Lending - Private Mortgage Insurance

FOR the purpose of repealing certain provisions of State law that require certain
lenders to furnish to borrowers a certain statement relating to private mortgage
insurance; altering certain provisions of State law relating to private mortgage
insurance to conform to the provisions of the federal Homeowners Protection Act
of 1998; providing for the effective date of this Act; and generally relating to
private mortgage insurance.

BY repealing and reenacting, with amendments,
Article - Commercial Law
Section 12-106(d)
Annotated Code of Maryland

(1990 Replacement Volume and 1998 Supplement)

BY repealing and reenacting, with amendments,
Article - Financial Institutions
Section 5-508 and 9-903
Annotated Code of Maryland
(1998 Replacement Volume and 1998 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Commercial Law

12-106.

[(d) (1) At the time of application for a loan under this title secured by
residential real property, the lender shall furnish to the borrower a clear and
conspicuous written statement, in print not smaller than 10 point type, specifying
that if private mortgage insurance is required to be purchased as a condition for
making the loan, the borrower may be eligible to request that under appropriate
circumstances the private mortgage insurance be canceled. The statement shall be
signed by the borrower and a copy shall be furnished to the borrower.]

(2) PARAGRAPH (1) OF THIS SUBSECTION DOBS NOT APPLY TO ANY LOAN
SUBJECT TO THE DISCLOSURE PROVISIONS OF THE FEDERAL HOMEOWNERS
PROTECTION ACT OF 1998, IF THE LENDER COMPLIES AT LOAN CONSUMMATION
WITH THE DISCLOSURE REQUIREMENTS OF THE ACT.