Bill
Bill > S685
MA S685
Relative to the fiduciary responsibility of lenders for non-payment of insurance premiums from escrowed accounts
summary
Introduced
02/16/2023
02/16/2023
In Committee
02/16/2023
02/16/2023
Crossed Over
Passed
Dead
12/31/2024
12/31/2024
Introduced Session
193rd 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 the Massachusetts General Laws to establish a fiduciary responsibility for lenders who require borrowers to escrow insurance premiums for real estate secured by a mortgage loan. If the lender fails to pay the insurance premium when due, despite having sufficient escrowed funds, and the property owner suffers a loss as a result, the lender is liable for the loss, up to the coverage limits of the lapsed insurance policy. The lender is also required to pay the insurance premium and any increased cost for a new policy for three 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 S2636 (on 02/12/2024)
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/193/S685 |
| BillText | https://malegislature.gov/Bills/193/S685.pdf |
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