The Senate approved legislation late Wednesday that would automatically cancel private mortgage insurance when a borrower's equity in a home reaches 22%.
The House passed similar legislation Tuesday, but will have to vote on the bill again because senators tacked on an unrelated amendment that would guarantee medical students at a troubled Philadelphia hospital would continue receiving student loans. House lawmakers are expected to approve the amended legislation with no objection, a House Banking Committee spokesman said Thursday.
Under the bill, homeowners may request cancellation upon reaching 20% equity as long as their payments are current and their home has not depreciated below its purchase value. High-risk mortgages could not be canceled until halfway through the loan's term.