House and Senate conferees finally agreed on flood insurance legislation July 18, and, if approved by the full Congress as is expected, mortgage lenders could be escrowing for flood insurance for borrowers and force placing it for borrowers that dont have it by early 1995.

The bill, which has been wandering the halls of Congress in some form for more than three years, would require mortgage lenders to establish escrow accounts for flood insurance premiums for residential real estate loans if they escrow for other purposes. It would also require lenders to force place insurance for a property where the borrower is notified of the need to purchase flood insurance, but fails to purchase it.

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