Press Release July 14, 1998	Contact: 202/462-6262, Frank Torres, torrfr@consumer.org Kathleen McShea, mcshka@consumer.org Consumers Union Washington, DC Office

A Win for Homeowners: Onto the Senate for Action
Consumers Want Right to Cancel
Unnecessary Private Mortgage Insurance

WASHINGTON – Following is a statement from Frank Torres, III., legislative counsel at Consumers Union, publisher of Consumer Reports magazine, reacting to passage of a new Private Mortgage Insurance reform proposal by the House of Representatives Tuesday:

"The House of Representatives did a good deed for consumers today by passing legislation to give homeowners automatic cancellation rights for homeowners insurance. Homeowners have been saddled with unnecessary mortgage insurance payments long enough. Overpayments of PMI costs American homeowners millions of dollars every year.

"As a result of today’s action the automatic termination of PMI is guaranteed. If this bill is signed into law, PMI is automatically terminated when homeowners build-up 22 percent equity in their homes. A homeowner can request cancellation of PMI when their equity reaches 20 percent. The bottom line for many homeowners is that they can now look forward to saving thousands of dollars over the life of the mortgage. The Senate must now act on the bill. We encourage the Senate to move quickly."

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