House Bill 4775

    Florida House of Representatives - 1998                HB 4775

        By Representative Culp






  1                      A bill to be entitled

  2         An act relating to mortgage insurance; creating

  3         s. 627.708, F.S.; requiring cancellation of a

  4         homeowner's mortgage insurance under certain

  5         circumstances; providing an exception;

  6         providing an effective date.

  7

  8  Be It Enacted by the Legislature of the State of Florida:

  9

10         Section 1.  Section 627.708, Florida Statutes, is

11  created to read:

12         627.708  Mortgage insurance;

13  cancellation.--Notwithstanding any other provision of law, a

14  mortgagee shall cancel any mortgage insurance required by the

15  mortgagee on a mortgage on residential property whenever the

16  equity in the mortgaged property equals or exceeds 20 percent

17  of the total amount of the mortgage, unless the mortgagor

18  requests in writing that such insurance be continued. A

19  mortgagor who has requested the continuation of mortgage

20  insurance under this section may cancel such insurance at any

21  time.

22         Section 2.  This act shall take effect upon becoming a

23  law.

24

25            *****************************************

26                          HOUSE SUMMARY

27
      Requires cancellation of mortgage insurance on a
28    residential mortgage when a homeowner's equity in the
      mortgaged property equals or exceeds 20 percent of the
29    value of the mortgage unless the homeowner requests
      continuation of the insurance. See bill for details.
30

31

                                  1