Cx18930 and a Massachusetts-specific notice which prints on Cx10 concerning flood insurance are provided due to the provisions of Mass. Gen. Laws Ann. Ch. 183, § 69. Further details about these disclosures may be found in two of our previous announcements (http://www.docutechcorp.com/document-updates-and-new-document-notice-of-required-flood-insurance-cx10-massachusetts-version-and-ma-flood-insurance-notice-cx18930 and http://www.docutechcorp.com/document-updates-ma-flood-insurance-notice-cx18930).
As previously announced, the Massachusetts Division of Banks had proposed a model form for fulfilling the Commonwealth’s statutory requirements. The Division has now finalized these rules (209 Mass. Code Regs. 57.00), which contain a revised model form (http://www.mass.gov/ocabr/banking-and-finance/laws-and-regulations/dob-regulations/historical-info/209-cmr-57-00-flood-insurance-final-amendments.html).
We will be updating Cx18930 to substantively match the new model form. In addition, due to the following “Q&A” from the Division’s website, we will be removing the notice from Cx10 since it will, eventually, no longer be adequate for complying with Massachusetts’ requirements and will reduce maintenance on DocuTech’s part:
“Q. For the period between November 20, 2014 and the effective date of the implementing regulations, the Division allowed the written notice required by Chapter 177 to be combined with another disclosure or notice provided to the purchaser or owner of residential property? Will the Division extend this implementation policy beyond Friday, September 11, 2015 to provide time to creditors and creditor’s representatives to update their loan origination systems to reflect the content and format of the Notice About Flood Insurance Coverage under the final regulation?
A. Yes, the Division will extend this implementation policy for a period of sixty (60) days following the effective date of the regulations. Therefore, until November 9, 2015, the creditor or creditor’s representative may combine the notice required by Chapter 177 with another disclosure or notice. If combined, such disclosure containing the additional notice required by Chapter 177 must be provided to the purchaser or owner at the time the purchaser or owner is notified of the need to purchase or pay for flood insurance in accordance with the timing requirements of Chapter 177. The notice must be provided in clear and conspicuous print and a copy of the notice must be retained in the creditor’s and creditor’s representative’s records to illustrate compliance and to have available for inspection by the Division’s examiners.
However, as of November 10, 2015, all creditor’s and creditor’s representatives will be required to provide a Notice About Flood Insurance Coverage to the purchaser or owner which strictly conforms with the form of notice specified in 209 CMR 57.05(3) and in accordance with the requirements of 209 CMR 57.00 et seq.”
These changes will take effect on September 18, 2015. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
September 14, 2015