WASHINGTON - A House banking subcommittee approved legislation. Wednesday that requires lenders in most states to collect flood insurance premiums from mortgage customers as part of their monthly escrow payment.

The provision, which was opposed by the banking industry, makes an exception for states that do not allow lenders to escrow monthly payments for taxes, insurance, and other purposes. The exemption was adopted as an amendment sponsored by Rep. Douglas Bereuter, R-Neb.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.