1-1 By: Burnam (Senate Sponsor - Moncrief) H.B. No. 1755 1-2 (In the Senate - Received from the House May 9, 1997; 1-3 May 12, 1997, read first time and referred to Committee on Economic 1-4 Development; May 18, 1997, reported favorably, as amended, by the 1-5 following vote: Yeas 10, Nays 0; May 18, 1997, sent to printer.) 1-6 COMMITTEE AMENDMENT NO. 1 By: Duncan 1-7 Amend H.B. No. 1755 in SECTION 1 of the bill, in Subsection 1-8 (c) of added Section 1B, Article 21.50, Insurance Code (engrossed 1-9 version, page 1, line 44), between "(c)" and "In", by inserting the 1-10 following: 1-11 If federal law requires a lender to provide a borrower with a 1-12 written notice containing substantially the same information 1-13 required by Subsection (a) of this section, a lender who provides 1-14 the notice required by federal law within the period prescribed by 1-15 federal law satisfies the notice requirement of Subsection (a) of 1-16 this section. 1-17 (d) 1-18 A BILL TO BE ENTITLED 1-19 AN ACT 1-20 relating to a mortgage guaranty insurance policy. 1-21 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-22 SECTION 1. Article 21.50, Insurance Code, is amended by 1-23 adding Section 1B to read as follows: 1-24 Sec. 1B. NOTICE TO BORROWER. (a) A lender that requires a 1-25 borrower to purchase mortgage guaranty insurance shall provide 1-26 annually to the borrower a copy of the following written notice 1-27 printed in at least 10-point bold-faced type: 1-28 "NOTICE OF RIGHT TO CANCEL PRIVATE MORTGAGE INSURANCE: If 1-29 you currently pay private mortgage insurance premiums, you may have 1-30 the right to cancel the insurance and cease paying premiums. This 1-31 would permit you to make a lower total monthly mortgage payment and 1-32 to possibly receive a refund of any unearned premiums on the 1-33 policy. In most cases, you have the right to cancel private 1-34 mortgage insurance if the principal balance of your loan is 80 1-35 percent or less of the current fair market appraised value of your 1-36 home. If you want to learn whether you are eligible to cancel this 1-37 insurance, please contact us at (address and telephone number of 1-38 lender) or the Texas Department of Insurance consumer help line at 1-39 (the appropriate toll-free telephone number)." 1-40 (b) If a lender receives a refund of an unearned mortgage 1-41 guaranty insurance premium paid by a borrower, the lender shall 1-42 remit the refund to the borrower not later than the 10th business 1-43 day after the date on which the lender receives the refund. 1-44 (c) In this section, "lender" has the meaning assigned by 1-45 Section 1(1), Article 21.48A, of this code. 1-46 SECTION 2. This Act takes effect January 1, 1998. 1-47 SECTION 3. The importance of this legislation and the 1-48 crowded condition of the calendars in both houses create an 1-49 emergency and an imperative public necessity that the 1-50 constitutional rule requiring bills to be read on three several 1-51 days in each house be suspended, and this rule is hereby suspended. 1-52 * * * * *