HOUSE BILL No. 5379


     November 13, 1997, Introduced by Reps. Callahan, Brater, DeHart, Hale, Wojno, Schauer, Bogardus, Frank and Brewer and referred to the Committee on Commerce.


        A bill to amend 1996 PA 354, entitled

   "Savings bank act,"

   (MCL 487.3101 to 487.3804) by adding section 511a.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 511A.  (1) IF A SAVINGS BANK 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 SAVINGS BANK 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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