This document is being provided due to new statutory provisions which took effect on November 20, 2014 (see http://www.docutechcorp.com/document-updates-and-new-document-notice-of-required-flood-insurance-cx10-massachusetts-version-and-ma-flood-insurance-notice-cx18930), which require a notice concerning flood insurance to be provided to borrowers for loans secured by certain property located in Massachusetts.
Since this time, the Massachusetts Division of Banks and Loan Agencies has issued a proposed regulation which includes a model notice to be used to comply with the provisions of Mass. Gen. Laws Ann. ch. 183, § 69 (see 2014 Mass. Reg. 379042 [December 5, 2014]). While these regulations have not been finalized as yet, the Massachusetts Housing Finance Agency is requiring that the model form be used now.
Due to this, plus the fact that differences between proposed and final regulations issued by states rarely differ, we will proceed to update Cx18930 to strictly match the model “Notice of Flood Insurance Coverage” published on the Division’s website (http://www.mass.gov/ocabr/banking-and-finance/laws-and-regulations/dob-faqs/faqchapter177.html).
Proposed Mass. Regs. Code tit. 209, § 57.05(3) requires the Notice to “strictly conform” to the model form, so additional information that we traditionally include on forms, such as our Information Table, will not be included. However, with permission from the Massachusetts Division of Banks, we have modified the form slightly to add two extra lines for borrower acknowledgment and adequate space for barcodes to print.
Once the regulations are published in their final form, we will reevaluate the content and configuration of this form, as well as the notice which was included on our “Notice of Required Flood Insurance” (Cx10), and make any additional changes which may be required.
The changes in this announcement will take effect immediately, due to the Massachusetts Housing Finance Agency requiring the new model form on such short notice. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
January 9, 2015