It turns out the automatic cancellation does not cover anybody who already has a mortgage or who gets one before late July 1999, when the bill takes effect. Nor does it cover any mortgage that is insured by the FHA, as Ikens' loan is. It applies only to homes insured by private mortgage insurers. This is expected to hit low-income homeowners the hardest. Those two agencies have not yet come up with the definitions.
Most consumer groups applaud parts of the new law.
They like the automatic termination clause, and they support the bill's provisions that even those with existing mortgages be notified that they may be able to cancel the insurance. But many say it falls seriously short. It purports to provide a protection that it doesn't really provide. Mortgage insurance has been touted as good for consumers. Borrowers who buy the insurance are often able to buy houses sooner, or to buy bigger houses.