Fannie Mae last week said it had changed its private mortgage insurance guidelines to make them consistent with the Homeowners Protection Act, which takes effect next month.

The new law requires that single-family, principal-residence mortgages originated on or after July 29 allow a borrower's mortgage insurance to end automatically when the loan balance reaches 78% of the original property value, if loan payments are current. Fannie Mae's revised guidelines comply with this provision.

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