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Homeowners Protection Act of 1998

Public Law 105-216 · S. 318 · 105th Congress · began in the Senate

Signed by Bill Clinton (D) on Jul 29, 1998 · Finance and Financial Sector

Sponsor: Sen. Alfonse D’Amato (R-NY)

Cosponsors (8): Sen. Richard Bryan,

Passage votes

  • HouseUnanimous consent
  • SenateUnanimous consent
Data notes

The final version of the law, as each chamber passed it. A chamber that passed it by voice vote or unanimous consent has no count. “Method not stated” means the record does not say how the chamber voted. Where the record has a member-by-member vote, the “Who voted for it” section shows who voted yea.

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Summary

The Congressional Research Service’s plain-language summary of what the law does.

Homeowners Protection Act of 1998 - Prescribes guidelines for mandatory termination of private mortgage insurance (PMI) for a residential mortgage when the principal balance is first scheduled to reach or actually reaches 80 percent of the original value of the property securing the mortgage loan, including: (1) a mortgagor's written cancellation request; (2) automatic termination; (3) final termination; (4) no further payments; and (5) return of unearned premiums. Cites exceptions for high risk loans.

(Sec. 3) Requires the Comptroller General to detail for the Congress the volume and characteristics of residential mortgages and residential mortgage transactions that are exempt from the borrower cancellation and automatic termination requirements of this Act.

(Sec. 4) Prescribes disclosure requirements for PMI amortization schedules, including for: (1) new mortgages at the time of transaction; (2) high-risk mortgages; (3) mortgage transactions entered into prior to enactment of this Act; (4) annual written updates; (5) PMI cancellation or termination; and (6) lender paid mortgage insurance.

(Sec. 7) Prohibits fees for such disclosures.

(Sec. 8) Subjects any servicer, mortgagee, or mortgage insurer in violation of this Act to civil liability for damages incurred by each mortgagor to whom the violation relates.

(Sec. 9) Preempts: (1) State law governing PMI (except protected State laws that are not inconsistent with this Act); and (2) servicing agreements entered into by Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, or any private investor or note holder.

Declares that a protected State law shall not be construed as inconsistent with this Act if it requires: (1) termination of PMI or other mortgage guaranty insurance at an earlier date or when a lower mortgage loan principal balance is achieved; or (2) disclosure of information that provides more information than required by this Act, or more often or at a date earlier than required by this Act.

(Sec. 10) Prescribes enforcement guidelines for Federal banking agencies.

(Sec. 11) States that this Act does not preclude an agreement between a mortgagor and mortgage holder to cancel or terminate a requirement for PMI in connection with a residential mortgage transaction before the cancellation or termination date established by this Act for the mortgage.

(Sec. 12) Amends the Higher Education Act of 1965, with respect to student assistance programs, to consider to be an institution of higher education any nonprofit institution whose primary function is to provide health care educational services (or an affiliate with the power, by contract or ownership interest, to direct or cause the direction of the institution's management or policies) that files for bankruptcy under chapter 11 (Reorganization) of the bankruptcy code between July 1, and December 31, 1998.

(Sec. 14) Abolishes the Thrift Depositor Protection Oversight Board. Provides for the continuation of Resolution Funding Corporation orders, resolutions, determinations, and regulations. Transfers to the Secretary of the Treasury the authority of the Thrift Depositor Protection Oversight Board, and the duties of the Resolution Funding Corporation.

Amends the Resolution Trust Corporation Completion Act to remove the Chairperson of the Thrift Depositor Protection Oversight Board from mandatory membership on the Affordable Housing Advisory Board. Repeals the directive that such Board conduct its meetings where substantial residential property assets of the Federal Deposit Insurance Corporation or the Resolution Trust Corporation are located.

Committees

The committees the bill was sent to, and what each did with it.

Data notes

A committee links to its page only where it exists in the current Congress; older and renamed committees are named without a link.

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Timeline

From introduction to signing, newest first: the committees, the floor and the president. 19 actions.

  1. Jul 29, 1998Became lawBecame law · Became Public Law No: 105-216.
  2. Became lawBecame law · Signed by President.
  3. Jul 21, 1998PresidentPresident · Presented to President.
  4. Jul 16, 1998Resolving differencesResolving differences · Motion to reconsider laid on the table Agreed to without objection.
  5. Resolving differencesResolving differences · On motion that the House agree to the Senate amendments to the House amendments Agreed to without objection.
  6. Resolving differencesResolving differences · Mr. Leach asked unanimous consent that the House agree to the Senate amendments to the House amendments.
  7. Jul 15, 1998Resolving differencesResolving differences · Senate concurred in the House amendments with an amendment(SP 3171) by Unanimous Consent.
  8. FloorFloor · Measure laid before Senate by unanimous consent.
  9. Jul 14, 1998FloorFloor · Motion to reconsider laid on the table Agreed to without objection.
  10. FloorFloor · On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.
  11. FloorFloor · Mr. Leach moved to suspend the rules and pass the bill, as amended.
  12. Nov 9, 1997FloorFloor · Passed Senate with an amendment by Unanimous Consent.
  13. FloorFloor · The committee substitute as amended agreed to by Unanimous Consent.
  14. FloorFloor · Measure laid before Senate by unanimous consent.
  15. Oct 31, 1997CommitteeCommittee · Reported by Senate Banking, Housing, and Urban Affairs Committee
  16. Oct 23, 1997CommitteeCommittee · Markup by Senate Banking, Housing, and Urban Affairs Committee
  17. Feb 25, 1997CommitteeCommittee · Hearings by Senate Banking, Housing, and Urban Affairs Committee
  18. Feb 12, 1997CommitteeCommittee · Referred to Senate Banking, Housing, and Urban Affairs Committee
  19. IntroducedIntroduced · Introduced in the Senate
Data notes

Shows the introduction, each committee and subcommittee step the source dates (referral, hearings, markup, report, discharge), and the floor, conference, presidential and became-law steps. Calendar placements, messages between the chambers, amendments and committee report numbers are not shown for laws before the 108th Congress. Two entries the source lists twice are shown once.

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Official record

The bill’s full text and every action, including introduction and committee steps, are on Congress.gov. Data through Oct 7, 2026.