Financial Institutions - Mortgage Servicers - Insurance Proceeds

Summary

The bill directs mortgage servicers that receive insurance payments for damaged homes to deposit those funds in a federally insured loss‑draft account earning at least 2% simple interest. Borrowers must elect whether the interest is kept in the account or paid directly to them, and servicers may charge limited fees for wire transfers. The measure aims to protect borrowers by ensuring insurance proceeds earn interest and are disbursed promptly.

AI-generated summary — may be incomplete or inaccurate. Verify against the official bill text.

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