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MA S794
Bill
Status
Introduced
2/27/2025
Primary Sponsor
Mark Montigny
Click for details
AI Summary
- Banks that require borrowers to escrow property insurance premiums become liable for losses if they negligently fail to pay the premium when due and sufficient funds exist in the escrow account
- Bank liability for covered losses is capped at the coverage limits of the lapsed insurance policy
- Banks must pay the insurance premium plus any increased costs for securing a new policy for a period of 3 years following their failure to pay
- Banks must pay any late fees charged by insurance companies when premium payments are delayed
- Amends Chapter 167E, Section 4 of Massachusetts General Laws by adding new subsection (d)
Legislative Description
Relative to the fiduciary responsibility of lenders for non-payment of insurance premiums from escrowed accounts
Last Action
Bill reported favorably by committee and referred to the committee on Senate Ways and Means
1/12/2026
Committee Referrals
Ways and Means1/12/2026
Financial Services2/27/2025
Full Bill Text
No bill text available