PRIOR PRINTER'S NO. 3604                     PRINTER'S NO.  3875

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2428 Session of 2008


        INTRODUCED BY FRANKEL, MUSTIO, BELFANTI, BENNINGTON, BOYD,
           BUXTON, CALTAGIRONE, CARROLL, CLYMER, COSTA, CREIGHTON,
           DeLUCA, DENLINGER, DERMODY, DONATUCCI, EACHUS, ELLIS,
           EVERETT, GERBER, GRELL, HALUSKA, HARKINS, HARRIS, HENNESSEY,
           HERSHEY, JOSEPHS, W. KELLER, KENNEY, KORTZ, KOTIK, KULA,
           LEACH, LEVDANSKY, LONGIETTI, MANDERINO, MANN, MARKOSEK,
           MARSHALL, McGEEHAN, McILHATTAN, MELIO, MICOZZIE, R. MILLER,
           MILNE, MOUL, MOYER, MUNDY, MURT, MYERS, NICKOL, M. O'BRIEN,
           PETRARCA, PETRONE, PHILLIPS, PYLE, READSHAW, REED, REICHLEY,
           SAINATO, SAMUELSON, SHAPIRO, SIPTROTH, M. SMITH, SONNEY,
           STURLA, SURRA, J. TAYLOR, TURZAI, WAGNER, WALKO, WANSACZ,
           WATSON, WHEATLEY, J. WHITE, YOUNGBLOOD, ROAE, MENSCH AND
           SCHRODER, APRIL 15, 2008

        AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,
           JUNE 9, 2008

                                     AN ACT

     1  Regulating the amount of property insurance coverage required by
     2     certain lenders.

     3     The General Assembly of the Commonwealth of Pennsylvania
     4  hereby enacts as follows:
     5  Section 1.  Short title.
     6     This act shall be known and may be cited as the Mortgage
     7  Property Insurance Coverage Act.
     8  Section 2.  Definitions.
     9     The following words and phrases when used in this act shall
    10  have the meanings given to them in this section unless the
    11  context clearly indicates otherwise:
    12     "Lender."  Any bank, savings bank, savings and loan

     1  association, credit union, mortgage bank, mortgage broker,
     2  finance company, consumer discount company or other financial
     3  institution or person that lends money to a borrower and secures
     4  the loan by a mortgage given by the borrower on real property or
     5  by placing a lien against real property.
     6     "Property insurance coverage."  Real property insurance
     7  COVERING OWNER-OCCUPIED PRIVATE RESIDENTIAL PROPERTIES against    <--
     8  losses caused by perils that commonly are covered in insurance
     9  policies described with terms similar to "standard fire" or
    10  "standard fire with extended coverage."
    11  Section 3.  Restriction.
    12     No lender may require a borrower, as a condition of obtaining
    13  or maintaining a secured loan, to obtain property insurance
    14  coverage which exceeds the replacement value of buildings and
    15  structures situate on the land used to secure the loan. A
    16  borrower on a loan secured by real property may not be required
    17  to insure the value of the land.
    18  Section 10.  Effective date.
    19     This act shall take effect immediately.








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