HOUSE BILL No. 5382


     November 13, 1997, Introduced by Reps. Brown, Callahan, Brater, Bogardus, Wojno, Schauer, Hale, Schermesser, Quarles, Rison, Frank, DeHart, LaForge, Agee, Palamara and Mans and referred to the Committee on Commerce.


        A bill to amend 1980 PA 307, entitled

   "Savings and loan act of 1980,"

   (MCL 491.102 to 491.1202) by adding section 702b.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 702B.  (1) IF AN ASSOCIATION REQUIRES A MORTGAGEE TO

 2    OBTAIN PRIVATE MORTGAGE INSURANCE AS A CONDITION OF RECEIVING A

 3    MORTGAGE LOAN WITH A LOAN TO VALUE RATIO ABOVE A CERTAIN PERCEN-

 4    TAGE, WHEN THE LOAN BALANCE HAS DROPPED BELOW THE EQUITY REQUIRE-

 5    MENT THE ASSOCIATION SHALL NOTIFY THE MORTGAGEE AND DISCONTINUE

 6    THE PRIVATE MORTGAGE INSURANCE.

 7         (2) AS USED IN THIS SECTION, "PRIVATE MORTGAGE INSURANCE"

 8    MEANS INSURANCE OBTAINED TO PROTECT THE MORTGAGOR AGAINST BOR-

 9    ROWER DEFAULT.






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