In the letter states that "Senator Hagan’s amendment would greatly benefit the implementation of BW-12 by providing lenders additional time to implement proper systems and processes to ensure compliance with new escrow requirements."
Among the changes included in the Hagan amendment:
- "limit BW-12 mandatory escrow requirements to first lien loans for primary residences when such a loan is originated, refinanced, increased, extended, or renewed on or after January 1, 2016.
- protect lenders and borrowers from unnecessarily costly and potentially duplicative requirements to escrow for flood insurance on loans for which escrow makes little sense"
Read the text of the Hagan amendment.