MORTGAGE LENDING PRACTICES ( Act 135 of 1997 )

445.1G02a Property/Casualty insurance as condition to loan: limitation on amount required; amount as condition of sale, transfer, or assignment.

500. 2a(1) Except as provided in subsection (2), a credit granting institution that requires a mortgagor to maintain property/casualty insurance as a condition to receiving a mortgage loan shall not require the amount of the property/casualty insurance to be greater than the replacement cost of the mortgaged building or buildings.

• A credit granting institution may require an amount of property/casualty insurance that: is required of the credit granting institution as a condition of a sale, transfer, of assignment of all or part of the mortgage to a third party. This subsection does not require that the credit granting institution anticipate a sale, transfer, or assignment at the time the mortgage loan is made.

History: Add. 1995, Act 214, Imd. Bff. Nov 29, 1999.