Section 346-1-14 - InsuranceMortgage Loans generally require the following insurance:
A.Mortgage Insurance. Private mortgage insurance acceptable to MaineHousing or federal mortgage insurance or a federal guaranty of repayment, if the loan to value ratio exceeds an amount set by MaineHousing in accordance with prudent lending standards, with any resulting private mortgage insurance being subject to the provisions contained in the Homeowners Protection Act of 1998.B.Title Insurance. Lender's title insurance ensuring MaineHousing has a good and valid first lien Mortgage on the Eligible Residence subject only to: (1) standard exceptions permitted by national mortgage market lenders; and(2) other minor impediments to title if the Lender warrants the impediments do not materially affect marketability and the Lender indemnifies MaineHousing against cost and damages arising from the impediment.C.Hazard Insurance. Fire and customary extended coverage insurance in an amount equal to the lesser of replacement cost of the improvements or the original principal balance of the Mortgage Loan, unless otherwise permitted by MaineHousing.D.Flood Insurance. Flood insurance if required in accordance with prudent lending standards or federal mandates.E.Condominiums. Fidelity insurance, if the Eligible Residence is part of a condominium that has more than twenty units, and comprehensive public liability insurance for the association of unit owners.99- 346 C.M.R. ch. 1, § 14