12 U.S.C. § 4908 — Effect on other laws and agreements

(a) Effect on State^* law.

(1) In general. For a residential mortgage^* or residential mortgage transaction^* completed after this chapter’s effective date, and except as provided in paragraph (2), this chapter overrides any State-law provision about requirements for obtaining or keeping private mortgage insurance^* for residential mortgage transactions, canceling or automatically ending that insurance, disclosing information covered by this chapter, or any other matter specifically covered by this chapter.

(2) Protection of existing State laws.

(A) In general. This chapter does not override a protected State law, except to the extent that law conflicts with this chapter, and then only to the extent of the conflict.

(B) Inconsistencies. A protected State law is not considered conflicting if it:

(i) requires private mortgage insurance^* or other mortgage-guaranty insurance to end—

(I) earlier than this chapter requires; or

(II) when the mortgage principal balance reaches a higher level than this chapter provides; or

(ii) requires disclosures—

(I) containing more information than this chapter requires; or

(II) made more often or earlier than this chapter requires.

(C) Protected State laws. “Protected State law” means a State law:

(i) concerning requirements for private mortgage insurance in residential mortgage transactions;

(ii) enacted no later than two years after July 29, 1998; and

(iii) from a State that had, on or before January 2, 1998, a State law described in clause (i). This section does not otherwise define “protected State law.”

(b) Effect on other agreements. This chapter overrides any conflicting term in an agreement about servicing a residential mortgage loan made by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, a private investor or note holder, or any successor to one of them.