Bill > H849

This bill amends Chapter 167B of the General Laws to establish new responsibilities for lenders regarding insurance premiums paid from escrowed accounts. Specifically, if a lender neglects to pay an insurance premium for a property secured by a mortgage, despite having sufficient funds in the borrower's escrow account (a dedicated account held by the lender to collect funds for taxes and insurance), and if the property owner suffers a loss due to this non-payment, the lender will be held liable for that loss, up to the coverage limits of the lapsed insurance policy. Furthermore, the lender will be required to pay the insurance premium and any increased costs for a new policy for three years, and also cover any late fees charged by the insurance company if the premium payment is delayed.