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PMI Reform: Good Intentions Gone Awry

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Last April, the House of Representatives overwhelmingly passed the Homeowners Insurance Protection Act (H.R. 607) with the noblest of intentions-relieving the burden of as many as 250,000 home owners who currently pay for private mortgage insurance (PMI), even though their loan agreements may stipulate that such insurance is no longer necessary. Similar legislation, the Homeowners Protection Act of 1997 (S. 318), is now being considered by the Senate Committee on Banking, Housing, and Urban Affairs (Banking Committee).

Last April, the House of Representatives overwhelmingly passed the Homeowners Insurance Protection Act (H.R. 607) with the noblest of intentions-relieving the burden of as many as 250,000 home owners who currently pay for private mortgage insurance (PMI), even though their loan agreements may stipulate that such insurance is no longer necessary. Similar legislation, the Homeowners Protection Act of 1997 (S. 318), is now being considered by the Senate Committee on Banking, Housing, and Urban Affairs (Banking Committee).


Suggested citation: Longhofer, Stenley D., 1997. "PMI Reform: Good Intentions Gone Awry," Federal Reserve Bank of Cleveland, Economic Commentary, 03.15.1997.

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