Proctor Financial’s Compliance Team is actively tracking proposed legislation in the New York legislature. New York AB 4770-A and its companion bill SB4629-A would place restrictions on flood insurance required by mortgagees. Specifically, the bills prohibit mortgagees from requiring the purchase of flood insurance that exceeds the unpaid balance of the loan or includes contents coverage. The bills also include disclosure language that must be included on client flood notices. The disclosure informs borrowers that the required flood insurance coverage may be insufficient in certain respects and advises the borrower they may purchase additional coverage to protect their interests. The legislation has passed the NY Assembly and is currently in the NY Senate. If passed in its current state, these requirements would take effect immediately.
Proctor will continue to track the movement of this legislation and provide updates as needed.