H-3103              _______________________________________________

                                                   HOUSE BILL NO. 2606

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Representatives Ferguson, Beck, Haugen, Ballard, Jones, Chandler, Nutley, Winsley, Anderson, Miller, Van Luven, Holland, Nealey, Fuhrman, Forner, Raiter, Wolfe, Doty, Wood, Cooper, Tate, Youngsman, Zellinsky, D. Sommers, Nelson, Sayan, Wineberry, K. Wilson, Phillips, Belcher, Dorn, Day, Crane, Baugher, Wang, Dellwo, Jacobsen, Rector, Kremen, Padden, Smith, Horn, Betrozoff, Moyer, Scott, Bowman, Hankins and Schoon

Read first time 1/17/90 and referred to Committee on Financial Institutions & Insurance.

AN ACT Relating to mortgage insurance; and adding a new section to chapter 19.-- RCW (chapter 98, Laws of 1989).

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 19.-- RCW (chapter 98, Laws of 1989) to read as follows:

          (1) If private mortgage insurance or mortgage guaranty insurance is required as a condition of a loan, the lender shall notify the borrower whether or not the borrower has the right to cancel the insurance.  If the borrower has the right to cancel, then the lender shall notify the borrower in writing of the following:

          (a) Any identifying loan or insurance information necessary to permit the borrower to communicate with the insurer or the lender concerning the insurance;

          (b) The conditions that are required to be satisfied before the mortgage insurance may be subject to cancellation; and

          (c) The procedure the borrower is required to follow to cancel the private mortgage insurance or mortgage guaranty insurance.

          (2) The notice required under this section shall be given to the borrower upon close of escrow or as soon thereafter as the lender knows or should know the requirements for cancellation of the private mortgage insurance or mortgage guaranty insurance.  The notice shall be provided without cost to the borrower.