By Burnam H.B. No. 1755 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to a mortgage guaranty insurance policy. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Article 21.50, Insurance Code, is amended by 1-5 adding Section 1B to read as follows: 1-6 Sec. 1B. NOTICE TO BORROWER. (a) A lender that requires a 1-7 borrower to purchase mortgage guaranty insurance shall provide 1-8 annually to the borrower a copy of the following written notice 1-9 printed in at least 10-point bold-faced type: 1-10 "NOTICE OF RIGHT TO CANCEL PRIVATE MORTGAGE INSURANCE: If 1-11 you currently pay private mortgage insurance premiums, you may have 1-12 the right to cancel the insurance and cease paying premiums. This 1-13 would permit you to make a lower total monthly mortgage payment and 1-14 to possibly receive a refund of any unearned premiums on the 1-15 policy. In most cases, you have the right to cancel private 1-16 mortgage insurance if the principal balance of your loan is 80 1-17 percent or less of the current fair market appraised value of your 1-18 home. If you want to learn whether you are eligible to cancel this 1-19 insurance, please contact us at (address and telephone number of 1-20 lender) or the Texas Department of Insurance consumer help line at 1-21 (the appropriate toll-free telephone number)." 1-22 (b) If a lender receives a refund of an unearned mortgage 1-23 guaranty insurance premium paid by a borrower, the lender shall 1-24 remit the refund to the borrower not later than the 10th business 2-1 day after the date on which the lender receives the refund. 2-2 (c) In this section, "lender" has the meaning assigned by 2-3 Section 1(1), Article 21.48A, of this code. 2-4 SECTION 2. This Act takes effect January 1, 1998. 2-5 SECTION 3. The importance of this legislation and the 2-6 crowded condition of the calendars in both houses create an 2-7 emergency and an imperative public necessity that the 2-8 constitutional rule requiring bills to be read on three several 2-9 days in each house be suspended, and this rule is hereby suspended.