Please do not leave this page until complete. This can take a few moments.
The Massachusetts House of Representatives on Wednesday unanimously approved legislation (H 3783) banning lenders from requiring borrowers to purchase federal flood insurance through the National Flood Insurance Program in an amount exceeding the outstanding mortgage on their property.
Rep. Michael Costello, a Democrat from Newburyport, said under the federal Biggert-Waters Act passed last year, homeowners were facing exorbitant flood insurance bills. “It gives the homeowner, rather than the lender, the ability to choose the amount of insurance,” Costello said on the House floor.
Rep. James Cantwell, a Marshfield Democrat, said the new insurance rates would have forced people out of their homes, because they would no longer be able to afford them. Rep. Josh Cutler, a Democrat from Duxbury, said the bill would “blunt the potential impact” of the new flood insurance costs.
Homeowners still have the option of purchasing additional insurance, but cannot be forced to purchase more than the value of their mortgage, Cutler said.
The Massachusetts Bankers Association has cautioned that the bill could leave borrowers significantly underinsured if they suffer a catastrophic flood loss. The association says the issue is best dealt with at the federal level, where Congress is considering proposals to deliver premium relief.
The House on Wednesday also unanimously enacted a bill authorizing $177 million in state borrowing to support federal military installations in Massachusetts, an unusual effort that supporters say is designed to preserve jobs amid the reshaping of the U.S. military.
Stay connected! Every business day, WBJ Daily Report will be delivered to your inbox by noon. It provides a daily update of the area’s most important business news.
Sign upWorcester Business Journal provides the top coverage of news, trends, data, politics and personalities of the Central Mass business community. Get the news and information you need from the award-winning writers at WBJ. Don’t miss out - subscribe today.
SubscribeWorcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
See Digital EditionStay connected! Every business day, WBJ Daily Report will be delivered to your inbox by noon. It provides a daily update of the area’s most important business news.
Worcester Business Journal provides the top coverage of news, trends, data, politics and personalities of the Central Mass business community. Get the news and information you need from the award-winning writers at WBJ. Don’t miss out - subscribe today.
Worcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
In order to use this feature, we need some information from you. You can also login or register for a free account.
By clicking submit you are agreeing to our cookie usage and Privacy Policy
Already have an account? Login
Already have an account? Login
Want to create an account? Register
In order to use this feature, we need some information from you. You can also login or register for a free account.
By clicking submit you are agreeing to our cookie usage and Privacy Policy
Already have an account? Login
Already have an account? Login
Want to create an account? Register
This website uses cookies to ensure you get the best experience on our website. Our privacy policy
To ensure the best experience on our website, articles cannot be read without allowing cookies. Please allow cookies to continue reading. Our privacy policy
0 Comments