Hearing Will Focus On New Flood Insurance Law

The Massachusetts Division of Banks was scheduled to hold a public informational hearing on Thursday to get input on rules that require creditors to provide disclosures when a borrower is required to purchase flood insurance.

The regulations were mandated under a new law that goes into effect on Nov. 20. It prohibits creditors from requiring flood insurance that is greater than the balance of the mortgage or that has less than a $5,000 deductible. The law also requires creditors to provide borrowers with a notice about flood insurance coverage before it is purchased.


Source: Miami Herald

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