President Clinton is expected to sign into law any day now a private mortgage insurance reform bill that calls for automatic cancellation of private MI once a homeowner's equity reaches 22%.The Homeowners' Insurance Protection Act (S. 318) was recently approved by unanimous consent in both chambers. However, an unrelated amendment was attached to the bill by Sen. Rick Santorum, R, Pa., and the House had to agree to the change before the legislation went to President Clinton. The House unanimously agreed to the Santorum amendment Thursday night. Under the bill, a lender must tell a borrower if he or she can cancel private MI and, if so, the date upon which the person may initiate cancellation. The lender must disclose this information before loans are closed. After the closing, the mortgage servicer must provide an annual disclosure to homeowners reminding them of their right to cancel their MI policy. Although S. 318 mandates automatic cancellation of private MI at 22% equity, a creditworthy borrower may cancel at 20% equity.
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Last year, the Raleigh, N.C.-based Integrated called off a deal to sell itself to MVB Financial after bank stocks took a hit in the aftermath of the regional bank failures. Capital hopes to expand its government-guaranteed lending with the transaction.
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The pending end of the program comes as over half of U.S. states have already ceased accepting new applicants for federal aid aimed to help struggling households with mortgage payments.
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But the 30-year fixed rate mortgage is still near 7%, and that remains the overhang on the housing market, Freddie Mac said.
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Mortgage payments rose 10% year-over-year to an all-time high for March, Redfin said.
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In an interview, Candor Technology's Sara Knochel recounts how she applies her childhood interest in languages and numbers to crucial home lending issues.
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Harmonizing standards for liquidity coverage ratios and discount window pledges could prevent the type of strains that led to last year's bank failures, according to a new paper whose authors include former Federal Reserve Govs. Dan Tarullo and Jeremy Stein.
March 27