House leaders Tuesday canceled a vote on legislation that would automatically terminate private mortgage insurance.
The bill, overwhelmingly approved by the House Banking Committee on March 20, was slated to go to the House floor Tuesday as one of several uncontroversial measures.
Sources said House Majority Leader Richard Armey canceled the vote after industry groups asked for more time to make changes to the bill. Calls to Rep. Armey's office were not returned.
The measure, sponsored by Rep. James Hansen, R-Utah, would cancel mortgage insurance when a borrower's equity in a home reaches 25%. The bill also would require lenders to make annual disclosures showing how much a borrower would need to pay on the loan to avoid mortgage insurance.
The Senate Banking Committee is still trying to work out an agreement on similar legislation. The panel was slated to vote March 18 on a plan that would have automatically terminated coverage when a borrower's equity reached 20%. But opposition from fellow Republicans forced Senate Banking Committee Chairman Alfonse M. D'Amato to cancel that vote.