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MA S685

Relative to the fiduciary responsibility of lenders for non-payment of insurance premiums from escrowed accounts


summary

Introduced
02/16/2023
In Committee
02/16/2023
Crossed Over
Passed
Dead
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)

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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