Mich. Comp. Laws § 445.1602a
Property/casualty insurance as condition to loan; limitation on amount required; amount as condition of sale, transfer, or assignment.
Michigan · Michigan Compiled Laws — MORTGAGE LENDING PRACTICES (Act 135 of 1977) · Status: effective
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- Citation
- Mich. Comp. Laws § 445.1602a, Property/casualty insurance as condition to loan; limitation on amount required; amount as condition of sale, transfer, or assignment, Michigan, version 1 as recorded 2026-08-18, yourstate.us, https://yourstate.us/provision/1362953
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Full text
(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.
(2) 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, or 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.