§ 4903. Disclosure requirements
(a)
Disclosures for new mortgages at time of transaction
(1)
Disclosures for non-exempted transactions
In any case in which private mortgage insurance is required in connection with a residential mortgage transaction (other than a residential mortgage transaction described in section
4902
(g)(1) of this title), at the time at which the transaction is consummated, the mortgagee shall provide to the mortgagor—
(A)
if the transaction relates to a fixed rate mortgage—
(ii)
written notice—
(I)
that the mortgagor may cancel the requirement in accordance with section
4902
(a) of this title indicating the date on which the mortgagor may request cancellation, based solely on the initial amortization schedule;
(II)
that the mortgagor may request cancellation in accordance with section
4902
(a) of this title earlier than provided for in the initial amortization schedule, based on actual payments;
(B)
if the transaction relates to an adjustable rate mortgage, a written notice that—
(i)
the mortgagor may cancel the requirement in accordance with section
4902
(a) of this title on the cancellation date, and that the servicer will notify the mortgagor when the cancellation date is reached;
(2)
Disclosures for excepted transactions
In the case of a residential mortgage transaction described in section
4902
(g)(1) of this title, at the time at which the transaction is consummated, the mortgagee shall provide written notice to the mortgagor that in no case may private mortgage insurance be required beyond the date that is the midpoint of the amortization period of the loan, if the mortgagor is current on payments required by the terms of the residential mortgage.
(3)
Annual disclosures
If private mortgage insurance is required in connection with a residential mortgage transaction, the servicer shall disclose to the mortgagor in each such transaction in an annual written statement—
(b)
Disclosures for existing mortgages
If private mortgage insurance was required in connection with a residential mortgage entered into at any time before the effective date of this chapter, the servicer shall disclose to the mortgagor in each such transaction in an annual written statement—
(c)
Inclusion in other annual notices
The information and disclosures required under subsection (b) of this section and subsection (a)(3) of this section may be provided on the annual disclosure relating to the escrow account made as required under the Real Estate Settlement Procedures Act of 1974 [12 U.S.C. 2601 et seq.], or as part of the annual disclosure of interest payments made pursuant to Internal Revenue Service regulations, and on a form promulgated by the Internal Revenue Service for that purpose.
(d)
Standardized forms
The mortgagee or servicer may use standardized forms for the provision of disclosures required under this section, which disclosures shall relate to the mortgagor’s rights under this chapter.