New York passed a bill enacting flood insurance requirements and restrictions on mortgage lenders and servicers. Under the bill, a mortgage lender or servicer may not require a borrower to purchase or pay for flood insurance on residential real property that has a coverage amount in excess of the outstanding principal mortgage balance (as of the beginning of the year for which the policy will be in effect), or that includes coverage for contents. In addition, if a borrower is required to purchase or pay for flood insurance on residential real property, the mortgage lender or servicer must provide a flood insurance notice to the borrower at the time the mortgage lender or servicer is notified of the need to purchase or pay for flood insurance. The bill mandates the language of the flood insurance notice. The bill went into effect December 13, 2024.
Click to view the NY AB 5073: https://www.tenaco.com/wp-content/uploads/2024/12/NY-AB-5073-12-17-24.pdf
