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12 U.S.C. § 4904 — Notification upon cancellation or termination
Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** Not later than 30 days after the date of cancellation or termination of a private mortgage insurance requirement in accordance with this chapter, the servicer shall notify the mortgagor in writing—
(1) that the private mortgage insurance has terminated and that the mortgagor no longer has private mortgage insurance; and
(2) that no further premiums, payments, or other fees shall be due or payable by the mortgagor in connection with the private mortgage insurance.
**(b) Notice of grounds**
(1) **In general** — If a servicer determines that a mortgage did not meet the requirements for termination or cancellation of private mortgage insurance under subsection (a) or (b) of [section 4902 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4902&num=0&edition=prelim), the servicer shall provide written notice to the mortgagor of the grounds relied on to make the determination (including the results of any appraisal used to make the determination).
(2) **Timing** — Notice required by paragraph (1) shall be provided—
(A) with respect to cancellation of private mortgage insurance under [section 4902(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4902/a&num=0&edition=prelim), not later than 30 days after the later of—
(i) the date on which a request is received under [section 4902(a)(1) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4902/a/1&num=0&edition=prelim); or
(ii) the date on which the mortgagor satisfies any evidence and certification requirements under section 4902(a)(3) 11 See References in Text note below. of this title; and
(B) with respect to termination of private mortgage insurance under [section
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Source file: Laws/federal/codes/united-states-code/title-12/section-4904-notification-upon-cancellation-or-termination--9cb193eb09.md
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Source location: Title 12, Chapter 49, § 4904; chapter-049-homeowners-protection.md
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**(a) In general** Not later than 30 days after the date of cancellation or termination of a private mortgage insurance requirement in accordance with this chapter, the servicer shall notify the mortgagor in writing—
(1) that the private mortgage insurance has terminated and that the mortgagor no longer has private mortgage insurance; and
(2) that no further premiums, payments, or other fees shall be due or payable by the mortgagor in connection with the private mortgage insurance.
**(b) Notice of grounds**
(1) **In general** — If a servicer determines that a mortgage did not meet the requirements for termination or cancellation of private mortgage insurance under subsection (a) or (b) of [section 4902 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4902&num=0&edition=prelim), the servicer shall provide written notice to the mortgagor of the grounds relied on to make the determination (including the results of any appraisal used to make the determination).
(2) **Timing** — Notice required by paragraph (1) shall be provided—
(A) with respect to cancellation of private mortgage insurance under [section 4902(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4902/a&num=0&edition=prelim), not later than 30 days after the later of—
(i) the date on which a request is received under [section 4902(a)(1) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4902/a/1&num=0&edition=prelim); or
(ii) the date on which the mortgagor satisfies any evidence and certification requirements under section 4902(a)(3) 11 See References in Text note below. of this title; and
(B) with respect to termination of private mortgage insurance under [section 4902(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4902/b&num=0&edition=prelim), not later than 30 days after the scheduled termination date.
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Federal law — U.S. Code and appendices · legal_authorities
In this chapter, the following definitions shall apply:
(1) **Adjustable rate mortgage** — The term “adjustable rate mortgage” means a residential mortgage that has an interest rate that is subject to change. 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 chapter.
(2) **Cancellation date** — The term “cancellation date” means—
(A) with respect to a fixed rate mortgage, at the option of the mortgagor, the date on which the principal balance of the mortgage—
(i) based solely on the initial amortization schedule for that mortgage, and irrespective of the outstanding balance for that mortgage on that date, is first scheduled to reach 80 percent of the original value of the property securing the loan; or
(ii) based solely on actual payments, reaches 80 percent of the original value of the property securing the loan; and
(B) with respect to an adjustable rate mortgage, at the option of the mortgagor, the date on which the principal balance of the mortgage—
(i) based solely on the amortization schedule then in effect for that mortgage, and irrespective of the outstanding balance for that mortgage on that date, is first scheduled to reach 80 percent of the original value of the property securing the loan; or
(ii) based solely on actual payments, first reaches 80 percent of the original value of the property securing the loan.
(3) **Fixed rate mortgage** — The term “fixed rate mortgage” means a residential mortgage that has an interest rate that is not subject to change.
(4) **Good payment history** — The term “good
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Borrower cancellation** A requirement for private mortgage insurance in connection with a residential mortgage transaction shall be canceled on the cancellation date or any later date that the mortgagor fulfills all of the requirements under paragraphs (1) through (4), if the mortgagor—
(1) submits a request in writing to the servicer that cancellation be initiated;
(2) has a good payment history with respect to the residential mortgage;
(3) is current on the payments required by the terms of the residential mortgage transaction; and
(4) has satisfied any requirement of the holder of the mortgage (as of the date of a request under paragraph (1)) for—
(A) evidence (of a type established in advance and made known to the mortgagor by the servicer promptly upon receipt of a request under paragraph (1)) that the value of the property securing the mortgage has not declined below the original value of the property; and
(B) certification that the equity of the mortgagor in the residence securing the mortgage is unencumbered by a subordinate lien.
**(b) Automatic termination** A requirement for private mortgage insurance in connection with a residential mortgage transaction shall terminate with respect to payments for that mortgage insurance made by the mortgagor—
(1) on the termination date if, on that date, the mortgagor is current on the payments required by the terms of the residential mortgage transaction; or
(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) Final termination** If a requirement for private mortgage insurance is not otherwise canceled or terminated i
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Federal law — U.S. Code and appendices · legal_authorities
Page 1771
TITLE 12—BANKS AND BANKING
§ 4905
1 See References in Text note below.
Pub. L. 105–216, set out as an Effective Date note under
section 4901 of this title.
The Real Estate Settlement Procedures Act of 1974,
referred to in subsec. (c), is Pub. L. 93–533, Dec. 22, 1974,
88 Stat. 1724, which is classified principally to chapter
27 (§ 2601 et seq.) of this title. For complete classifica-
tion of this Act to the Code, see Short Title note set
out under section 2601 of this title and Tables.
AMENDMENTS
2000—Subsec. (a)(1). Pub. L. 106–569, §§ 402(c)(2)(A)(i),
403(b)(1)(A), substituted ‘‘residential mortgage trans-
action (other than a residential mortgage transaction
described in section 4902(g)(1) of this title)’’ for ‘‘resi-
dential mortgage or mortgage transaction (other than
a mortgage or mortgage transaction described in sec-
tion 4902(f)(1) of this title)’’ in introductory provisions.
Subsec. (a)(1)(A)(ii)(IV), (B)(iii). Pub. L. 106–569,
§ 402(c)(2)(A)(ii), (iii), substituted ‘‘section 4902(g) of this
title’’ for ‘‘section 4902(f) of this title’’.
Subsec.
(a)(2).
Pub.
L.
106–569,
§§ 402(c)(2)(B),
403(b)(1)(B), substituted ‘‘residential mortgage trans-
action’’ for ‘‘mortgage or mortgage transaction’’ and
‘‘section 4902(g)(1) of this title’’ for ‘‘section 4902(f)(1) of
this title’’.
Subsec. (c). Pub. L. 106–569, § 403(b)(2), substituted
‘‘subsection (a)(3)’’ for ‘‘paragraphs (1)(B) and (3) of sub-
section (a)’’.
Subsec. (d). Pub. L. 106–569, § 403(b)(3), inserted before
period at end ‘‘, which disclosures shall relate to the
mortgagor’s rights under this chapter’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 1 year after July 29, 1998, see section
13 of Pub. L. 105–216, set out as a note under section
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