---
title: "AFR Compliance Update: NY Senate Bill S2670"
description: New York Senate Bill S2670 amends A5073 in an attempt to correct its prior discrepancies with federal regulations and provide greater clarity to borrowers.
---

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# [AFR Compliance Update: NY Senate Bill S2670](https://blog.afrservices.com/ny-senate-bill-s2670)

 Written by [AFR Services](https://blog.afrservices.com/author/afr-services) | Mon, Mar 10, 2025

 

If you’ve been actively following **New York Assembly Bill A5073**, you now have a tiny bit more clarity with the passage of **New York Senate Bill S2670**. This new bill **amends** A5073 with two key updates.

### **1. Clarification of Flood Insurance Limits**

The original **A5073 Bill** prohibited mortgage lenders in **New York** from requiring residential property owners to purchase flood insurance exceeding the **outstanding principal mortgage balance** at the start of the year or including coverage for **personal property contents**.

**S2670 clarifies this regulation** to state that lenders **cannot require** residential property owners to purchase flood insurance coverage exceeding the loan balance **or** the replacement cost value if it is less than the loan balance. Lenders are also still prohibited from requiring **contents coverage** for personal property.

The stated intent of this revision is to bring the rule in line with federal regulations, however all this revision does is state that you cannot overinsure a property if the loan balance exceeds the homes value. Read our original blog post on [NY Assembly Bill A5073](https://blog.afrservices.com/ny-assembly-bill-a5073) to learn more about ongoing conflicts with federal regulations.

#### **2. Revised Flood Insurance Disclosure Requirements**

The bill also updates the **language lenders must use** in flood insurance notices to **mortgagors**, removing the previous requirement that stated the lender was **only requiring flood insurance to protect its own interest**.

Under **S2670**, lenders must now inform borrowers that the **required policy may not cover all repair costs or personal property losses** in the event of a flood. The notice must also **encourage borrowers to consider additional coverage** for full protection of their property and belongings.

**Example Verbiage:**

*“The flood insurance we are requiring you to purchase may not be sufficient to pay for many needed repairs after a flood and may not compensate you for losses to your property due to a flood. If you wish to protect your home or investment, you may wish to purchase more flood insurance than the amount we are requiring you to buy.”*

#### **Effective Date**

This bill was **signed on February 14** and will go into effect on **May 15**. The **AFR compliance team** will continue to monitor updates and provide further insights as they become available.

#### **Stay ahead of regulatory changes like this with AFR Services. Subscribe to our blog today!**

[View full post](https://blog.afrservices.com/ny-senate-bill-s2670)

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