CA SB1450

Temporarily suspends mortgage guaranty insurance coverage limits until January 1, 2018, by deleting requirements that insurers limit coverage to no more than 30% at risk of indebtedness for residential properties with four or fewer families.

After January 1, 2018, reinstates the 30% coverage limit requirement but expands reinsurance authority to cover all insurance classes defined in Insurance Code Section 12640.02.

Establishes requirements for assuming insurers and reinsurers accepting ceded mortgage guaranty insurance, including minimum paid-in capital and surplus of $35,000,000 and deriving at least 50% of premium income from reinsurance.

Requires lenders to disclose in writing to borrowers that they are not parties to or beneficiaries of mortgage guaranty insurance policies when borrowers are required to pay insurance costs.

Exempts the California Housing Loan Insurance Fund and programs developed with federal or federally sponsored mortgage lenders from these coverage limitations.