12 U.S.C. §4908 — Effect on other laws
HPA preemption section. General federal preemption of State PMI requirements, cancellation/automatic termination, and disclosure law; preservation of more-borrower-favorable "protected State laws" (enacted within 2 years of July 29, 1998, by States with pre-existing PMI law as of January 2, 1998); supersession of conflicting Fannie Mae, Freddie Mac, and private-investor servicing agreements.
Verbatim regulatory text
Verbatim provisions from 12 U.S.C. §4908 — Effect on other laws — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
12 U.S.C. §4908(a)
(a) Effect on State law (1) In general With respect to any residential mortgage or residential mortgage transaction consummated after the effective date of this chapter, and except as provided in paragraph (2), the provisions of this chapter shall supersede any provisions of the law of any State relating to requirements for obtaining or maintaining private mortgage insurance in connection with residential mortgage transactions , cancellation or automatic termination of such private mortgage insurance, any disclosure of information addressed by this chapter, and any other matter specifically addressed by this chapter. (2) Protection of existing State laws (A) In general The provisions of this chapter do not supersede protected State laws , except to the extent that the protected State laws are inconsistent with any provision of this chapter, and then only to the extent of the inconsistency. (B) Inconsistencies A protected State law shall not be considered to be inconsistent with a provision of this chapter if the protected State law —
12 U.S.C. §4908(i)
(i) requires termination of private mortgage insurance or other mortgage guaranty insurance— (I) at a date earlier than as provided in this chapter; or (II) when a mortgage principal balance is achieved that is higher than as provided in this chapter; or (ii) requires disclosure of information— (I) that provides more information than the information required by this chapter; or (II) more often or at a date earlier than is required by this chapter. (C) Protected State laws For purposes of this paragraph, the term “ protected State law ” means a State law—
12 U.S.C. §4908(i)
(i) regarding any requirements relating to private mortgage insurance in connection with residential mortgage transactions ; (ii) that was enacted not later than 2 years after July 29, 1998 ; and (iii) that is the law of a State that had in effect, on or before January 2, 1998 , any State law described in clause (i).
12 U.S.C. §4908(b)
(b) Effect on other agreements The provisions of this chapter shall supersede any conflicting provision contained in any agreement relating to the servicing of a residential mortgage loan entered into by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, or any private investor or note holder (or any successors thereto). ( Pub. L. 105–216, § 9 , July 29, 1998 , 112 Stat. 906 .)
Operationalizing 12 U.S.C. §4908 — Effect on other laws
This is verbatim, source-snapshotted regulator text from the Claude for Compliance open corpus. To turn a rule like this into compliance work product: gap-analyze your policies and procedures (P&Ps) against these requirements to surface stale, conflicting, or missing provisions; operationalize any change with a ready-to-run update kit; and produce audit-ready evidence — every step grounded only in the regulator’s own words, never invented.
Source of record: https://claudeforcompliance.com/regs/hpa-12usc-4908/
· register hpa-12usc-4908 · Claude for Compliance. Free to read and download;
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