Bill > HB05317

This bill, effective July 1, 2026, amends existing law concerning flood damage and insurance notices for mortgage loans. It specifically defines a "mortgage loan" for the purposes of these notice requirements as a loan secured by a first mortgage on a one-to-four-family residential property in the state, made to finance the purchase of that property. The bill clarifies that creditors, which are entities making mortgage loans, must provide a written notice to applicants at least ten days before the closing of a mortgage loan transaction. This notice must inform the applicant that standard homeowners insurance does not cover flood damage, that flood damage can occur even outside designated flood zones, and that they should consider speaking with an insurance professional about flood insurance. The notice must be written in plain language, signed and dated by the applicant to confirm receipt, and a copy must be kept with the mortgage records.