Section 47 Discrimination against financing of dwellings having urea formaldehyde foam insulation - Massachusetts Statutes

Section 47. No bank, lending institution or mortgagee doing business in the commonwealth, which for the purpose of this section shall include any bank as defined in section one and shall include any national bank, national banking association, federal savings bank, federal savings and loan association, and federal credit union, shall discriminate in any manner in the financing of a home or dwelling, against homeowners or dwellings where the indoor ambient formaldehyde level is 0.10 ppm or below. Said banks, lending institutions, or mortgagees shall be relieved from all liability resulting from urea formaldehyde foam insulation (UFFI), if the seller, buyer, or mortgagor has disclosed the presence of UFFI and the formaldehyde level in the ambient air of the home or dwelling to the bank, lending institution, or mortgagee. A statement from the seller, buyer, or mortgagor that there is no UFFI in the home shall relieve such lending institution or mortgagee from all liability resulting from UFFI. Nothing contained in this section shall restrict the right of any bank, lending institution or mortgagee to process or deny a mortgage application in accordance with accepted underwriting practices or criteria.