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Bill > S620
MA S620
Relative to the fiduciary responsibility of lenders for non-payment of insurance premiums from escrowed accounts
summary
Introduced
01/22/2019
01/22/2019
In Committee
01/22/2019
01/22/2019
Crossed Over
Passed
Dead
12/31/2020
12/31/2020
Introduced Session
191st General Court
Bill Summary
For legislation relative to the fiduciary responsibility of lenders for non-payment of insurance premiums from escrowed accounts. Financial Services.
AI Summary
This bill amends Chapter 167E of the Massachusetts General Laws to establish new fiduciary responsibilities for banks that require borrowers to escrow insurance premiums for property secured by a mortgage loan. If a bank fails to pay the insurance premium from the escrowed funds when due, and the property owner suffers a loss as a result, the bank is liable for the loss, up to the coverage limits of the lapsed policy. The bank must also pay the insurance premium and any increased cost for a new policy for 3 years, as well as any late fees charged by the insurance company.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Accompanied a study order, see S2543 (on 02/18/2020)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://malegislature.gov/Bills/191/S620 |
| Bill | https://malegislature.gov/Bills/191/S620.pdf |
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