Regulatory Alerts2007-04-05 | ISGC-2007-007-DOBDirect Sales of Property and Casualty Insurance by State-Chartered Savings Banks
The Washington State Department of Financial Institutions issued an interpretive letter confirming that state-chartered savings banks may directly sell property and casualty insurance to mortgage borrowers. This authority is strictly limited to properties located in cities or contiguous suburbs where the bank maintains a branch, loan production office, or ATM. The regulator determined that these state-imposed geographic restrictions remain valid and are not preempted by federal banking laws such as the Gramm-Leach-Bliley Act.
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