Requirements on hazard insurance coverage for loans secured by real property.

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(1) No lender shall require a borrower under a loan secured by real property to provide hazard insurance coverage on that property in an amount exceeding the replacement value of the improvements on the property.

  1. Any person harmed by a violation of this section shall be entitled to obtain injunctiverelief and may recover damages and reasonable attorney fees and costs.

  2. A violation of this section does not affect the validity of the loan or the mortgage ordeed of trust.

Source: L. 88: Entire section added, p. 403, § 2, effective April 29.


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