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FOR IMMEDIATE RELEASE |
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State
Rep. Dan Frankel |
  
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House passes Frankel bill to reduce mortgage insurance costs
HARRISBURG, June 11 – The House of Representatives today passed a bill introduced by state Rep. Dan Frankel, D-Allegheny, that could save money for many current and future homeowners on their mortgage insurance bills.
Frankel's bill (H.B. 2428) passed the House 199-0. It would ban mortgage lenders from requiring homebuyers or current homeowners to obtain property insurance coverage that exceeds the replacement value of the home, buildings and structures for which the loan has been secured. Additionally, lenders could not require borrowers to insure the value of the land. The bill would apply only to owner-occupied residences.
"I introduced this bill because some lenders expect borrowers to insure the property for the full loan value, which can be higher than the replacement value of the dwelling and other buildings on the property. My bill would help to protect homeowners from paying for more insurance than they actually need," said Frankel, chairman of the Allegheny County Democratic Delegation in the House.
The bill now goes to the state Senate for consideration.
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